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Trade Openness and Growth: Is There Any Link?

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Author Info
Sarkar, Prabirjit

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Abstract

The present study examines the relationship between openness (trade-GDP ratio) and growth. Our cross-country panel data analysis of a sample 51 countries of the South during 1981-2002 shows that for only 11 rich and highly trade-dependent countries a higher real growth is associated with a higher trade share. Time series study of individual country experiences shows that the majority of the countries covered in the sample including the East Asian countries experienced no positive long-term relationship between openness and growth during 1961-2002. Our study of the experience of various regions and groups shows that only the Middle Income group exhibited a positive long-term relationship.

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File URL: http://mpra.ub.uni-muenchen.de/4997/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4997.

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Date of creation: Sep 2007
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Handle: RePEc:pra:mprapa:4997

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Related research
Keywords: growth opening up liberalization less developed countries and globalization.

Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General

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