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Institutions and Structural Unemployment: North-South Trade, Openness and Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Rod Falvey ()
Neil Foster ()
David Greenaway ()
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In models of endogenous growth, international trade can impact upon growth by allowing access to the innovative products of other countries. Since developing countries do little if any innovation, it is primarily through trade with developed countries that they profit from higher levels of technological development. In this paper we construct an empirical model to estimate trade flows from the North to the South. Using the results of this model we construct a measure of openess to Northern imports, based on the deviation of actual imports from that predicted by our model.We find that this measure of openness is significantly and robustly related to economic growth, suggesting that trade with advanced countries can facilitate growth through the absorption of advanced technology.
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number
0108.
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Date of creation: Jun 2001Date of revision:
Handle: RePEc:vie:viennp:0108Contact details of provider: Web page: http://www.univie.ac.at/vwl
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Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade 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
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