Trade and economic growth: A re-examination of the empirical evidence
AbstractWhile trade integration is often regarded as a principal determinant of economic growth, the empirical evidence for a causal linkage between trade and growth is ambiguous. This paper argues that the effect of trade in dynamic panel estimations depends crucially on the specification of trade. Both from a theoretical as well as an empirical point of view one specification is preferred: the volume of exports and imports as a share of lagged total GDP. For this trade measure, a positive and highly significant impact on economic growth can be found. --
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Bibliographic InfoPaper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 123.
Date of creation: 2012
Date of revision:
Openness; Trade; Growth;
Find related papers by JEL classification:
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-FDG-2012-05-22 (Financial Development & Growth)
- NEP-INT-2012-05-22 (International Trade)
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