Outward-Orientation and Economic Growth: Additional Cross-Country Evidence
To shed further light on the role of outward-orientation in economic growth, Dollar’s (1992) framework is extended by (a) applying the methodology to the more recent period 1985-90, and (b) comparing a conventional measure of outward-orientation with Dollar’s indices of real-exchange-rate distortion and variability. The following main points are noted. First, for the entire developing-country sample, the broad parametric structure is somewhat similar for 1976-85 and 1985-90. Second, however, the parameter for real-exchange-rate variability seems considerably weaker for 1985-90. Third, the investment-parameters are much weaker in 1985-90 for the bottom haif and the bottom quartile subgroups. Fourth, the outward-orientation ranks of some countries show a marked departure in 1985-90 from those in 1976-85. Fifth, there is a dramatic difference between the two periods in regard to the significance of the exchange-rate-distortion index for the poorest group. Sixth, the conventional measure of outward-orientation shows high significance even in the presence of the exchange-rate distortion and variability indices. Seventh, the growth regressions show a considerably better fit when the conventional measure replaces the more refined indices of exchange-rate distortion and variability. The major message of the study is thus threefold: considerable caution is appropriate in generalizing to the poorest LDCs the merit of outward-orientation for economic growth; traditional measures of outward-orientation probably contain information that the indices of exchange-rate distortion and variability do not; and the significance of the exchange-rate variability index for economic growth appears uncertain.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 51 (1998)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: Via Garibaldi 4, 16124 Genova, Italy|
Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.ge.camcom.it/IT/Tool/Modulistica
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0292. 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)
If references are entirely missing, you can add them using this form.