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Notes on trade and growth

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Author Info
Frederico Gonzaga Jayme Jr ()

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Abstract

The theoretical and empirical connections between economic growth and trade have been discussed in economics for a long time This link, however, has been proved empirically to be weak, as there is little evidence about the role of trade in economic growth and development. Taking into consideration this fact, the aim of this paper is to study the relationship between trade and growth. The central question to be addressed is the causal relation running from trade to growth, or, more specifically, the theoretical relationship between trade and growth. Two aspects will be taken into consideration, namely, the relationship between trade and growth and Balance of Payments problems and their relation with macroeconomic policy. The theoretical literature used in this paper will analyze the channels between trade and growth in both directions. The purpose is to assess the causality running from trade to growth.

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Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td166.

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Length: 25 pages
Date of creation: Oct 2001
Date of revision:
Handle: RePEc:cdp:texdis:td166

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Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil

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Find related papers by JEL classification:
F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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References listed on IDEAS
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