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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. Havrylyshyn, Oleh & Tarr, David, 1991. "Trade liberalization and the transition to a market economy," Policy Research Working Paper Series 700, The World Bank.
  2. Sengupta, Jati K. & Okamura, Kumiko, 1996. "Learning by doing and openness in Japanese growth: A new approach," Japan and the World Economy, Elsevier, vol. 8(1), pages 43-64, March.
  3. Michele Bullock & Stephen Grenville & Geoffrey Heenan, 1993. "The Exchange Rate and the Current Account," RBA Annual Conference Volume, in: Adrian Blundell-Wignall (ed.), The Exchange Rate, International Trade and the Balance of Payments Reserve Bank of Australia.
  4. Alireza Rahimi-Boroujerdi, 2005. "An Empirical & Theoretical Study about the Effects of Tariff on Economic Growth," Iranian Economic Review, Economics faculty of Tehran university, vol. 10(1), pages 105-133, spring.
  5. Xavier Sala-i-Martin, 1994. "Lecture notes on economic growth (II): Five prototype models of endogenous growth," Economics Working Papers 78, Department of Economics and Business, Universitat Pompeu Fabra.
  6. Johnston, Paul V., 1992. "Trade Dependency Index Tables for Total, Merchandise and Agricultural Trade, 1960-88," Statistical Bulletin 154764, United States Department of Agriculture, Economic Research Service.
  7. David K. Backus & Patrick J. Kehoe & Timothy J. Kehoe, 1992. "In search of scale effects in trade and growth," Staff Report 152, Federal Reserve Bank of Minneapolis.
  8. Tybout, James R., 1991. "Researching the trade - productivity link : new directions," Policy Research Working Paper Series 638, The World Bank.
  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. Ibarra, Luis Alberto, 1995. "Credibility of trade policy reform and investment: the Mexican experience," Journal of Development Economics, Elsevier, vol. 47(1), pages 39-60, June.
  11. Nouriel Roubini & Xavier Sala-i-Martin, 1991. "Financial Repression and Economic Growth," NBER Working Papers 3876, National Bureau of Economic Research, Inc.
  12. 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.

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