IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v11y2007i1p159-169.html
   My bibliography  Save this article

Is International Trade More Beneficial to Lower Income Economies? An Empirical Inquiry

Author

Listed:
  • Farhad Rassekh

Abstract

Does the effect of international trade on income growth depend on the economy's level of development? More specifically, is trade more beneficial to lower income economies? Does trade contribute to a smaller international income inequality? The present paper seeks to answer these questions by employing the empirical model of Frankel and Romer (1999 ), which shows trade increases income growth in a cross section of 150 countries. We find evidence in support of the hypothesis that international trade benefits the lower income economies more than it benefits the higher income economies. This finding is robust in the presence of control variables including distance from the equator and institutional quality. Copyright © 2006 The Author; Journal compilation © 2006 Blackwell Publishing Ltd.

Suggested Citation

  • Farhad Rassekh, 2007. "Is International Trade More Beneficial to Lower Income Economies? An Empirical Inquiry," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 159-169, February.
  • Handle: RePEc:bla:rdevec:v:11:y:2007:i:1:p:159-169
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2006.00357.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Berdell, 2002. "International Trade and Economic Growth in Open Economies," Books, Edward Elgar Publishing, number 809.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jong-Wha Lee & Ju Hyun Pyun, 2016. "Does Trade Integration Contribute to Peace?," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 327-344, February.
    2. Nasri Harb, 2009. "Oil Exports, Non-Oil GDP, and Investment in the GCC Countries," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 695-708, November.
    3. Shahbaz, Muhammad, 2012. "Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan," Economic Modelling, Elsevier, vol. 29(6), pages 2325-2339.
    4. Kalim Shah, 2011. "Strategic organizational drivers of corporate environmental responsibility in the Caribbean hotel industry," Policy Sciences, Springer;Society of Policy Sciences, vol. 44(4), pages 321-344, November.
    5. Sugata Marjit & Biswajit Mandal & Suryadipta Roy, 2014. "Trade Openness, Corruption and Factor Abundance: Evidence from a Dynamic Panel," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 45-58, February.
    6. Catherine Boulatoff & Michael Jenkins, 2010. "Long-term Nexus Between Openness, Income, and Environmental Quality," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(4), pages 410-418, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:11:y:2007:i:1:p:159-169. 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). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.