The Impact of Trade Liberalisation on Economic Growth: Evidence from a Quantile Regression Analysis
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. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 61 (2008)
Issue (Month): 4 (November)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0023-5962|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maria Cipollina & Luca Salvatici, 2008.
"Measuring Protection: Mission Impossible?,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 22(3), pages 577-616, 07.
- Stanley Fischer & Carlos A. VÃ©gh Gramont & Ratna Sahay, 1996.
"Stabilization and Growth in Transition Economies; The Early Experience,"
IMF Working Papers
96/31, International Monetary Fund.
- S. Fisher & R. Sahay & C. A. Vegh, 1997. "Stabilization and Growth in Transition Economies: The Early Experience," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
- Stanley Fischer & Ratna Sahay & Carlos A. Vegh, 1996. "Stabilization and Growth in Transition Economies: The Early Experience," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 45-66, Spring.
- Fischer, Stanley & Sahay, Ratna & Vegh, Carlos, 1996. "Stabilization and growth in transition economies: The early experience," MPRA Paper 20631, University Library of Munich, Germany.
- Roger Koenker & Kevin F. Hallock, 2001.
Journal of Economic Perspectives,
American Economic Association, vol. 15(4), pages 143-156, Fall.
- Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, vol. 91(1), pages 74-89, October.
- Anne O. Krueger, 1997.
"Trade Policy and Economic Development: How We Learn,"
NBER Working Papers
5896, National Bureau of Economic Research, Inc.
- Krueger, Anne O, 1997. "Trade Policy and Economic Development: How We Learn," American Economic Review, American Economic Association, vol. 87(1), pages 1-22, March.
- Krueger, Anne O, 1998. "Why Trade Liberalisation Is Good for Growth," Economic Journal, Royal Economic Society, vol. 108(450), pages 1513-1522, September.
- Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
- L Alan Winters, 2004. "Trade Liberalisation and Economic Performance: An Overview," Economic Journal, Royal Economic Society, vol. 114(493), pages 4-21, 02.
- Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, vol. 49(2), pages 307-335, May.
- Greenaway, David & Morgan, Wyn & Wright, Peter, 2002. "Trade liberalisation and growth in developing countries," Journal of Development Economics, Elsevier, vol. 67(1), pages 229-244, February.
- World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12426, February.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- Rodrik, Dani, 1989.
"Promises, Promises: Credible Policy Reform via Signalling,"
Royal Economic Society, vol. 99(397), pages 756-772, September.
- Dani Rodrik, 1988. "Promises, Promises: Credible Policy Reform via Signaling," NBER Working Papers 2600, National Bureau of Economic Research, Inc.
- Hans Pitlik, 2007.
"The Impact of Growth Performance and Political Regime Type on Economic Policy Liberalization,"
WIFO Working Papers
- Hans Pitlik, 2008. "The Impact of Growth Performance and Political Regime Type on Economic Policy Liberalization," Kyklos, Wiley Blackwell, vol. 61(2), pages 258-278, 05.
- Greenaway, David, 1998. "Does Trade Liberalisation Promote Economic Development?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(5), pages 491-511, November.
- Lee, Jong-Wha, 1995.
"Capital goods imports and long-run growth,"
Journal of Development Economics,
Elsevier, vol. 48(1), pages 91-110, October.
- Andres Gonzalez & Timo Terasvirta & Dick van Dijk, 2005.
"Panel Smooth Transition Regression Models,"
Research Paper Series
165, Quantitative Finance Research Centre, University of Technology, Sydney.
- González, Andrés & Teräsvirta, Timo & van Dijk, Dick, 2005. "Panel Smooth Transition Regression Models," SSE/EFI Working Paper Series in Economics and Finance 604, Stockholm School of Economics.
- Falvey, Rod & Kim, Cha Dong, 1992. "Timing and Sequencing Issues in Trade Liberalisation," Economic Journal, Royal Economic Society, vol. 102(413), pages 908-924, July.
- Mello, Marcelo & Perrelli, Roberto, 2003. "Growth equations: a quantile regression exploration," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(4), pages 643-667.
- Salinas, Gonzalo & Aksoy, Ataman, 2006. "Growth before and after trade liberalization," Policy Research Working Paper Series 4062, The World Bank.
- Richard Kneller & C. W. Morgan & Sunti Kanchanahatakij, 2008. "Trade Liberalisation and Economic Growth," The World Economy, Wiley Blackwell, vol. 31(6), pages 701-719, 06.
- Hansen, Bruce E, 1996.
"Inference When a Nuisance Parameter Is Not Identified under the Null Hypothesis,"
Econometric Society, vol. 64(2), pages 413-430, March.
- Tom Doan, "undated". "TAR: RATS procedure to estimate a threshold autoregression, tests for threshold effect," Statistical Software Components RTS00209, Boston College Department of Economics.
- Hansen, B.E., 1991. "Inference when a Nuisance Parameter is Not Identified Under the Null Hypothesis," RCER Working Papers 296, University of Rochester - Center for Economic Research (RCER).
- Tom Doan, "undated". "RATS programs to replicate Hansen's threshold estimation and testing results," Statistical Software Components RTZ00091, Boston College Department of Economics.
- Pitlik, Hans, 2002. "The Path of Liberalization and Economic Growth," Kyklos, Wiley Blackwell, vol. 55(1), pages 57-79.
- Evan Osborne, 2006. "The Sources Of Growth At Different Stages Of Development," Contemporary Economic Policy, Western Economic Association International, vol. 24(4), pages 536-547, October.
- Greenaway, David, 1993. "Liberalising Foreign Trade through Rose-Tinted Glasses," Economic Journal, Royal Economic Society, vol. 103(416), pages 208-222, January.
- David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
- repec:wbk:wbpubs:12425 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:61:y:2008:i:4:p:543-567. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.