IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v3y1996i4p225-231.html
   My bibliography  Save this article

Does simultaneity exaggerate empirical tests of the trade-growth relationship?

Author

Listed:
  • Hendrik Van den Berg

Abstract

Simultaneity between the volume of trade and national output may have biased past empirical tests of the export-growth relationship. To judge the extent of such bias, this paper compares results of single- and simultaneous- equation regression models of trade and growth that closely resemble the specifications of previous studies. In order to enhance the analysis, a number of other alleged shortcomings of previous statistical studies of trade and growth are addressed: omitted variable bias and non-stationarity are dealt with by using modern time-series regression procedures, measurement error is reduced by using more accurate measures of capital and labour available for six Latin American countries over the period 1960-1990, and both imports and exports are used to proxy trade. The results shown that simultaneity bias causes single equation results to understate, not over state, the trade-growth relationship.

Suggested Citation

  • Hendrik Van den Berg, 1996. "Does simultaneity exaggerate empirical tests of the trade-growth relationship?," Applied Economics Letters, Taylor & Francis Journals, vol. 3(4), pages 225-231.
    • Handle: RePEc:taf:apeclt:v:3:y:1996:i:4:p:225-231
    DOI: 10.1080/758520869
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/758520869&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/758520869?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Roy J. Ruffin, 1993. "Endogenous growth and international trade," Working Papers 9332, Federal Reserve Bank of Dallas.
    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. Atrayee Ghosh Roy, 2009. "Evidence on economic growth and government size," Applied Economics, Taylor & Francis Journals, vol. 41(5), pages 607-614.
    2. Antonio N. Bojanic, 2012. "The Impact of Financial Development and Trade on the Economic Growth of Bolivia," Journal of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 51-70, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ben-David, Dan & Loewy, Michael B, 1995. "Free Trade and Long-Run Growth," CEPR Discussion Papers 1183, C.E.P.R. Discussion Papers.
    2. van den Berg, Hendrik, 1997. "The relationship between international trade and economic growth in Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 1-21.
    3. Ben-David, Dan & Loewy, Michael B, 1998. "Free Trade, Growth, and Convergence," Journal of Economic Growth, Springer, vol. 3(2), pages 143-170, June.

    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:taf:apeclt:v:3:y:1996:i:4:p:225-231. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.