Trade and Income in Asia: Panel Data Evidence from Instrumental Variable Regression
AbstractThis paper derives a Frankel-Romer instrument from a global trade matrix of 157 countries over the period 1990–2007, and deploys it to assess the relationship between international trade, domestic market potential, and income for the case of developing Asia, compared to the world average. The findings from panel instrumental variable regression confirm international trade to have caused income to rise on average across the world’s trading nations, but particularly so for countries of developing Asia, where this effect appears to be strongest. By contrast, domestic trade potential represented by country size is found to be less relevant a factor in explaining the rise in income of developing Asia. In light of a likely softening of external demand for Asian exports as global rebalancing takes hold, Asia’s underexploited domestic market potential represents considerable scope for the region to step up its efforts to gradually reinforce the domestic and regional dimensions as an additional engine of growth.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 234.
Length: 21 pages
Date of creation: Nov 2010
Date of revision:
Trade and Growth; Gravity Model; Frankel-Romer Instrument; Developing Asia;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yu, Bingxin & Nin Pratt, Alejandro, 2011.
"Agricultural Productivity and Policies in Sub-Saharan Africa,"
2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania
105400, Agricultural and Applied Economics Association.
- Yu, Bingxin & Nin-Pratt, Alejandro, 2011. "Agricultural productivity and policies in Sub-Saharan Africa:," IFPRI discussion papers 1150, International Food Policy Research Institute (IFPRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Guia S. de Guzman) The email address of this maintainer does not seem to be valid anymore. Please ask Maria Guia S. de Guzman to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.