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Economic growth and the role of trade in intermediates

Author

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  • Alessia Lo Turco

    () (Università Politecnica delle Marche)

Abstract

We estimate the effect of imports and exports of intermediates on economic growth in a panel of more than 100 among developed and developing economies across the period 1976-2008. We find that both capital and intermediate imports positively affect growth. The overall effect is driven by the effect of imports in developing countries. This role for imports is especially confined to imports from high income economies. Exports do not appear to affect growth in the long run.

Suggested Citation

  • Alessia Lo Turco, 2012. "Economic growth and the role of trade in intermediates," Economics Bulletin, AccessEcon, vol. 32(1), pages 596-615.
  • Handle: RePEc:ebl:ecbull:eb-11-00830
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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P56.pdf
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    More about this item

    Keywords

    imports; exports; economic growth;

    JEL classification:

    • F1 - International Economics - - Trade
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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