Advanced Search
MyIDEAS: Login to save this paper or follow this series

Working Paper 63 - Trade, Trade Liberalisation and Economic Growth: Theory and Evidence

Contents:

Author Info

Abstract

There can be little doubt that, historically, trade has acted as an important engine ofgrowth for countries at different stages of development, not only by contributing to a moreefficient allocation of resources within countries, but also by transmitting growth from onepart of the world to another. There are static and dynamic gains to be had from tradebetween countries but there is nothing in the theory of trade that says that the gains areequitably distributed. Also, there is nothing in the theory of Customs Unions that says thatthe gains from trade will be equitably distributed between members. Indeed, the CustomsUnion as a whole may be welfare-reducing if trade diversion exceeds trade creation. Recentresearch suggests that regional trade agreements, reduce growth and investment, butgeneralised trade liberalisation in the form of unilateral tariff reductions (or the reduction ofnon-tariff barriers to trade) improves growth performance. Export growth relax the balanceof payments constraint on demand by providing the foreign exchange to pay for the importcontent of higher levels of consumption, investment and government expenditure. Mostdeveloping countries are constrained in their growth performance by a shortage of foreignexchange and could therefore grow faster with more exports.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/00157660-EN-ERP-63.PDF
Download Restriction: no

Bibliographic Info

Paper provided by African Development Bank in its series Working Paper Series with number 197.

as in new window
Length:
Date of creation: 12 Mar 2002
Date of revision:
Handle: RePEc:adb:adbwps:197

Contact details of provider:
Postal: 15 Avenue du Ghana P.O.Box 323-1002 Tunis-Belvedère, Tunisia
Phone: (+216) 71 10 39 00
Fax: (225) 21.77.53
Email:
Web page: http://www.afdb.org/en/knowledge/publications/
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
  2. Anthony Philip Thirlwall, 1983. "Foreign trade elasticities in centre-periphery models of growth and development," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 36(146), pages 249-261.
  3. Anthony Thirlwall, 1995. "The Terms of Trade, Debt and Development: with Particular Reference to Africa," African Development Review, African Development Bank, vol. 7(1), pages 1-34.
  4. Esfahani, Hadi Salehi, 1991. "Exports, imports, and economic growth in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 35(1), pages 93-116, January.
  5. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
  6. de Melo, Jaime & Panagariya, Arvind & Rodrik, Dani, 1992. "The New Regionalism: A Country Perspective," CEPR Discussion Papers 715, C.E.P.R. Discussion Papers.
  7. J. S. L. McCombie & A. P. Thirlwall, 1997. "The Dynamic Harrod Foreign Trade Multiplier and the Demand-orientated Approach to Economic Growth: an Evaluation," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(1), pages 5-26.
  8. Dixon, R & Thirlwall, A P, 1975. "A Model of Regional Growth-Rate Differences on Kaldorian Lines," Oxford Economic Papers, Oxford University Press, vol. 27(2), pages 201-14, July.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:197. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adeleke Oluwole Salami).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.