Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence
AbstractDo countries with lower policy-induced barriers to international trade grow faster, once other relevant country characteristics are controlled for? There exists a large empirical literature providing an affirmative answer to this question. We argue that methodological problems with the empirical strategies employed in this literature leave the results open to diverse interpretations. In many cases, the indicators of openness' used by researchers are poor measures of trade barriers or are highly correlated with other sources of bad economic performance. In other cases, the methods used to ascertain the link between trade policy and growth have serious shortcomings. Papers that we review include Dollar (1992), Ben-David (1993), Sachs and Warner (1995), and Edwards (1998). We find little evidence that open trade policies--in the sense of lower tariff and non-tariff barriers to trade--are significantly associated with economic growth.
Download InfoIf 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.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7081.
Date of creation: Apr 1999
Date of revision:
Publication status: published as Bernanke, Ben and Kenneth S. Rogoff (eds.) NBER Macroeconomics Annual 2000, Volume 15. Cambrodge, MA: The MIT Press, 2001.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-AGR-1999-04-27 (Agricultural Economics)
- NEP-ALL-1999-04-27 (All new papers)
- NEP-CDM-1999-04-27 (Collective Decision-Making)
- NEP-DEV-1999-04-27 (Development)
- NEP-IND-1999-04-27 (Industrial Organization)
- NEP-PKE-1999-04-27 (Post Keynesian Economics)
- NEP-POL-1999-04-27 (Positive Political Economics)
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.:
- Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 108(3), pages 653-79, August.
- Robert E. Hall & Charles I. Jones, 1999.
"Why Do Some Countries Produce So Much More Output per Worker than Others?,"
NBER Working Papers
6564, National Bureau of Economic Research, Inc.
- Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(1), pages 83-116, February.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, Econometric Society, vol. 48(4), pages 817-38, May.
- Holger C. Wolf, 1993. "Trade orientation measurement and consequences," Estudios de Economia, University of Chile, Department of Economics, University of Chile, Department of Economics, vol. 20(esp Year ), pages 49-86, june.
- O'Rourke, Kevin H, 1997. "Tariffs and Growth in the Late Nineteenth Century," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1700, C.E.P.R. Discussion Papers.
- Edward E. Leamer, 1987.
"Measures of Openness,"
UCLA Economics Working Papers, UCLA Department of Economics
447, UCLA Department of Economics.
- Srinivasan. T.N., 1997. "As the Century Turns: Analytics, Empirics and Politics of Development," Papers, Yale - Economic Growth Center 783, Yale - Economic Growth Center.
- Bee Yan Aw & Sukkyun Chung & Mark J. Roberts, 1998. "Productivity and the Decision to Export: Micro Evidence from Taiwan and South Korea," NBER Working Papers 6558, National Bureau of Economic Research, Inc.
- Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, Elsevier, vol. 49(2), pages 307-335, May.
- David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, American Economic Association, vol. 89(3), pages 379-399, June.
- T. N. Srinivasan, 1997. "As the Century Turns: Analytics, Empirics and Politics of Development," Working Papers, Economic Growth Center, Yale University 783, Economic Growth Center, Yale University.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.