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"Does Trade Cause Growth?" - A Comment

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Author Info

  • V. Heinrich Amavilah

    (Gelendale College)

Abstract

The 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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Bibliographic Info

Paper provided by EconWPA in its series GE, Growth, Math methods with number 0307001.

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Length: 7 pages
Date of creation: 15 Jul 2003
Date of revision:
Handle: RePEc:wpa:wuwpge:0307001

Note: Type of Document - WordPerfect; prepared on IBM PC - PC; to print on HP/PostScript; pages: 7 ; figures: included. I never published this piece and now I would like to reduce our mailing and xerox cost by posting it.
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Web page: http://128.118.178.162

Related research

Keywords: trade as a cause of economic growth;

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References

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  1. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
  2. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
  3. Alcala, Francisco & Ciccone, Antonio, 2001. "Trade and Productivity," CEPR Discussion Papers 3095, C.E.P.R. Discussion Papers.
  4. Voxi Heinrich Amavilah, 1998. "German aid and trade versus Namibian GDP and labour productivity," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 689-695.
  5. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
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Cited by:
  1. Ngeleza, Guyslain, 2011. "Institutions, geography, trade, and income per capita: A spatial-simultaneous equation approach," IFPRI discussion papers 1082, International Food Policy Research Institute (IFPRI).

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