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The Impact of Trade Liberalisation on Economic Growth: Evidence from a Quantile Regression Analysis

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  • Neil Foster

Abstract

Individual country experience with trade liberalisation has been mixed. This paper examines the relationship between liberalisation and growth for a sample of 75 liberalising countries. To consider the importance of heterogeneity in the growth response to liberalisation this paper employs quantile regression methods which allow the coefficient on liberalisation to vary across the conditional growth distribution. The results suggest that countries experiencing the lowest rates of growth benefit most from liberalisation. The results also suggest that while such countries benefit most in the long‐run they are the most likely to suffer from short‐run negative effects of liberalisation.

Suggested Citation

  • Neil Foster, 2008. "The Impact of Trade Liberalisation on Economic Growth: Evidence from a Quantile Regression Analysis," Kyklos, Wiley Blackwell, vol. 61(4), pages 543-567, November.
    • Handle: RePEc:bla:kyklos:v:61:y:2008:i:4:p:543-567
    DOI: 10.1111/j.1467-6435.2008.00417.x
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    References listed on IDEAS

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