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Openness, outward orientation, trade liberalization, and economic performance in developing countries

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  • Edwards, Sebastian

Abstract

This paper provides a critical review of the existing empirical literature that deals with the relationship between trade orientation and economic performance. Using a model that avoids the shortcomings of most current measures of trade orientation, the author finds strong support for the hypothesis that, other things being equal, countries with a less distorted external sector grow faster than countries with a more distorted external sector.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 191.

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Date of creation: 30 Jun 1989
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Handle: RePEc:wbk:wbrwps:191

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Keywords: TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Economic Theory&Research; Trade Policy; Environmental Economics&Policies; Achieving Shared Growth;

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Cited by:
  1. Johnston, Paul V., 1992. "Trade Dependency Index Tables for Total, Merchandise and Agricultural Trade, 1960-88," Statistical Bulletin, United States Department of Agriculture, Economic Research Service 154764, United States Department of Agriculture, Economic Research Service.
  2. Timothy J. Kehoe & Kim J. Ruhl, 2010. "Why Have Economic Reforms in Mexico Not Generated Growth?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 1005-27, December.
  3. Michele Bullock & Stephen Grenville & Geoffrey Heenan, 1993. "The Exchange Rate and the Current Account," RBA Annual Conference Volume, Reserve Bank of Australia, in: Adrian Blundell-Wignall (ed.), The Exchange Rate, International Trade and the Balance of Payments Reserve Bank of Australia.
  4. Tybout, James R., 1991. "Researching the trade - productivity link : new directions," Policy Research Working Paper Series 638, The World Bank.
  5. Aitken, Brian J., 1992. "Measuring trade policy intervention : a cross-country index of relative price dispersion," Policy Research Working Paper Series 838, The World Bank.
  6. Xavier Sala-i-Martin, 1990. "Lecture Notes on Economic Growth(II): Five Prototype Models of Endogenous Growth," NBER Working Papers 3564, National Bureau of Economic Research, Inc.
  7. Havrylyshyn, Oleh & Tarr, David, 1991. "Trade liberalization and the transition to a market economy," Policy Research Working Paper Series 700, The World Bank.
  8. Ibarra, Luis Alberto, 1995. "Credibility of trade policy reform and investment: the Mexican experience," Journal of Development Economics, Elsevier, Elsevier, vol. 47(1), pages 39-60, June.
  9. Levine, Ross & Renelt, David, 1991. "Cross-country studies of growth and policy : methodological, conceptual, and statistical problems," Policy Research Working Paper Series 608, The World Bank.
  10. David K. Backus & Patrick J. Kehoe & Timothy J. Kehoe, 1992. "In search of scale effects in trade and growth," Staff Report, Federal Reserve Bank of Minneapolis 152, Federal Reserve Bank of Minneapolis.
  11. Alireza Rahimi-Boroujerdi, 2005. "An Empirical & Theoretical Study about the Effects of Tariff on Economic Growth," Iranian Economic Review, Economics faculty of Tehran university, Economics faculty of Tehran university, vol. 10(1), pages 105-133, spring.
  12. Nouriel Roubini & Xavier Sala-i-Martin, 1991. "Financial Repression and Economic Growth," NBER Working Papers 3876, National Bureau of Economic Research, Inc.
  13. Sengupta, Jati K. & Okamura, Kumiko, 1996. "Learning by doing and openness in Japanese growth: A new approach," Japan and the World Economy, Elsevier, Elsevier, vol. 8(1), pages 43-64, March.
  14. Farhad Rassekh, 1993. "International trade and the relative dispersion of industrial wages and production techniques in 14 OECD countries, 1970–1985," Open Economies Review, Springer, Springer, vol. 4(3), pages 325-344, September.
  15. Mustapha Nabli, 1990. "The political economy of trade liberalization in developing countries," Open Economies Review, Springer, Springer, vol. 1(2), pages 111-145, June.
  16. Agarwal, Jamuna Prasad & Langhammer, Rolf J. & Lücke, Matthias & Nunnenkamp, Peter, 1995. "Export expansion and diversification in Central and Eastern Europe : what can be learnt from East and Southeast Asia?," Kiel Discussion Papers 261, Kiel Institute for the World Economy (IfW).

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