"Does Trade Cause Growth?" - A Comment
AbstractThe proposition that trade causes economic growth has enriched international economic theory. Even so, how best to estimate and test for the effects of trade on economic growth remains a challenge to-date, mainly because of the joint determination of the empirical measures of both trade and economic growth. Professors Jeffrey Frankel and David Romer have offered and employed an insightful method of constructiong an IV for trade that is less troubling than previous attempts. Yet the new method too has some small problems. This comment points out those problems and suggests possible improvements.
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Date of creation: 15 Jul 2003
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trade as a cause of economic growth;
Find related papers by JEL classification:
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-25 (All new papers)
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