On the dynamic measurement of economic openness
The empirical relationship between economic openness and economic performance is much debated in the economic literature. No definitive conclusions seem to be reached yet, part of the problem being the very measurement of economic openness of a national economy. In their article in the Journal of Policy Modeling, Ruíz Estrada & Yap (2006) propose a new method to measure economic openness and to empirically assess the openness-growth nexus as a new tool for policy-makers: the Openness Growth Monitoring Model (OGM-Model). The authors claim: (i) that their method is different from and more flexible than existing empirical methods, (ii) that higher levels of openness do not lead to income growth, and (iii) that customs unions perform better than free trade areas. This short article challenges the three claims of the authors.
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.
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.:
- Andreas Billmeier & Tommaso Nannicini, 2007.
"Trade Openness and Growth; Pursuing Empirical Glasnost,"
IMF Working Papers
07/156, International Monetary Fund.
- Andreas Billmeier & Tommaso Nannicini, 2009. "Trade Openness and Growth: Pursuing Empirical Glasnost," IMF Staff Papers, Palgrave Macmillan, vol. 56(3), pages 447-475, August.
- Ben Lockwood, 2004. "How Robust is the Kearney/Foreign Policy Globalisation Index?," The World Economy, Wiley Blackwell, vol. 27(4), pages 507-523, 04.
- Salvatore, Dominick, 2004. "Growth and poverty in a globalizing world," Journal of Policy Modeling, Elsevier, vol. 26(4), pages 543-551, June.
- Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-93, September.
- Anderson, James E & Neary, J Peter, 1994.
"Measuring the Restrictiveness of Trade Policy,"
World Bank Economic Review,
World Bank Group, vol. 8(2), pages 151-69, May.
- Lloyd, P.J. & MacLaren, D., 1998.
"Measures of Trade Openness Using CGE Analysis,"
Department of Economics - Working Papers Series
659, The University of Melbourne.
- Pritchett, Lant, 1991. "Measuring outward orientation in developing countries : can it be done?," Policy Research Working Paper Series 566, The World Bank.
- Rodríguez, Francisco & Rodrik, Dani, 1999.
"Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence,"
CEPR Discussion Papers
2143, C.E.P.R. Discussion Papers.
- Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc.
- Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: a Skeptic's Guide to the Cross-National Evidence," Working Papers 9912, Economic Research Forum, revised Apr 1999.
- Stiglitz, Joseph E., 2004. "Globalization and growth in emerging markets," Journal of Policy Modeling, Elsevier, vol. 26(4), pages 465-484, June.
- David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
- William Easterly & Michael Kremer & Lant Pritchett & Lawrence H. Summers, 1993.
"Good Policy or Good Luck? Country Growth Performance and Temporary Shocks,"
NBER Working Papers
4474, National Bureau of Economic Research, Inc.
- Easterly, William & Kremer, Michael & Pritchett, Lant & Summers, Lawrence H., 1993. "Good policy or good luck?: Country growth performance and temporary shocks," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 459-483, December.
- Edward E. Leamer, 1987.
"Measures of Openness,"
UCLA Economics Working Papers
447, UCLA Department of Economics.
- Estrada, Mario Arturo Ruiz & Yap, Su Fei, 2006. "The Openness Growth Monitoring Model (OGM-Model)," Journal of Policy Modeling, Elsevier, vol. 28(3), pages 235-246, April.
- Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, vol. 49(2), pages 307-335, May.
- Srinivasan, T.N. & Bhagwati, J., 1999. "Outward-Orientation and Development: Are Revisionist Right?," Papers 806, Yale - Economic Growth Center.
When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:31:y:2009:i:5:p:731-736. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.