IDEAS home Printed from https://ideas.repec.org/a/ris/ecoint/0081.html
   My bibliography  Save this article

Outward-Orientation and Economic Growth in Developing Countries: A Quarter-Century Perspective

Author

Listed:

Abstract

Two widely-cited measures of outward orientation are constructed for the 1990s to estimate growth regressions of the kind reported by Dollar (1992) for 1976-1985 and Ram and Yang (1998) for 1985-1990. Indexes of outward orientation and regression estimates are compared for the three periods. Ten points emerge from the study. First, as measured by the index of exchangerate distortion, outward orientation in developing countries increased over the 25-year period 1976-2000. Second, the cross-country dispersion of this measure has tended to decline. Third, in terms of exchange-rate variability, outward orientation shows a slight decline, and its dispersion seems to have increased. Fourth, except for the Middle-East, regional patterns are broadly similar. Fifth, large changes are observed in outward-orientation ranks of many countries across the three periods. Sixth, however, ranks of many countries show a remarkable stability. Seventh, our full-sample estimates for 1991-2000 do not show a signifi cantly negative association of economic growth with either exchange-rate distortion or its variability, and present a marked contrast from those for 1976-1985 and 1986-1990. Eighth, our estimates indicate lack of association between outward-orientation and growth in any of the several subsamples considered by us. Ninth, when we generate a panel by pooling common observations (countries) for the three periods, the most appropriate econometric procedure shows that economic growth has no signifi cant negative association with either measure of outward-orientation in the entire set of pooled observations. Last, our research thus strengthens and extends the skepticism articulated by Rodriguez and Rodrik (2001) in regard to claims made about the empirical support provided by cross-country data for the growth-promoting role of outward-orientation.

Suggested Citation

  • Mukarugwiza, Esperance & Ram, Rati, 2006. "Outward-Orientation and Economic Growth in Developing Countries: A Quarter-Century Perspective," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 59(3), pages 383-399.
  • Handle: RePEc:ris:ecoint:0081
    as

    Download full text from publisher

    File URL: http://www.iei1946.it/RePEc/ccg/MUKARUGWIZA%20AND%20RAM%20383_399.pdf
    File Function: Full text
    Download Restriction: no

    More about this item

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    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:ris:ecoint:0081. 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: (Angela Procopio). General contact details of provider: http://edirc.repec.org/data/cacogit.html .

    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.

    We have no references for this item. You can help adding them by using 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.