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Trade Barriers, Openness, and Economic Growth

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  • Jakob B. Madsen

Abstract

Using a long data set on openness and productivity, this article tests the influence of openness on total factor productivity (TFP) growth and per capita growth since 1870 for 16 industrialized countries. It is shown, in simple regressions, that growth is, by and large, independent of openness. However, once the interaction between openness and foreign knowledge is allowed for, productivity is positively affected by openness.

Suggested Citation

  • Jakob B. Madsen, 2009. "Trade Barriers, Openness, and Economic Growth," Southern Economic Journal, John Wiley & Sons, vol. 76(2), pages 397-418, October.
    • Handle: RePEc:wly:soecon:v:76:y:2009:i:2:p:397-418
    DOI: 10.4284/sej.2009.76.2.397
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    Cited by:

    1. Wang, Feilan & Wong, Wing-Keung & Reivan Ortiz, Geovanny Genaro & Shraah, Ata Al & Mabrouk, Fatma & Li, Jianfeng & Li, Zeyun, 2023. "Economic analysis of sustainable exports value addition through natural resource management and artificial intelligence," Resources Policy, Elsevier, vol. 82(C).
    2. James B. Ang & Rajabrata Banerjee & Jakob B. Madsen, 2010. "Innovation, Technological Change And The British Agricultural Revolution," CAMA Working Papers 2010-11, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    3. Islam, Md. Rabiul & Madsen, Jakob B. & Doucouliagos, Hristos, 2018. "Does inequality constrain the power to tax? Evidence from the OECD," European Journal of Political Economy, Elsevier, vol. 52(C), pages 1-17.
    4. Jakob Madsen & James Ang & Rajabrata Banerjee, 2010. "Four centuries of British economic growth: the roles of technology and population," Journal of Economic Growth, Springer, vol. 15(4), pages 263-290, December.
    5. Ali, Amjad, 2022. "Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries," MPRA Paper 116101, University Library of Munich, Germany.
    6. Carmen D. Álvarez‐Albelo & Antonio Manresa & Mònica Pigem‐Vigo, 2018. "Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(4), pages 414-436, September.
    7. Moritz Schularick & Solomos Solomou, 2011. "Tariffs and economic growth in the first era of globalization," Journal of Economic Growth, Springer, vol. 16(1), pages 33-70, March.
    8. Leyla Gamidullaeva & Saniyat Agamagomedova, 2023. "How Administrative Regulation Institutional Factors Affect the Business Efficiency in a Region: A Case Study of Russian Regions," Economies, MDPI, vol. 11(3), pages 1-17, March.
    9. Yuan, Lingran & Zhang, Qizheng & Wang, Shuo & Hu, Weibin & Gong, Binlei, 2022. "Effects of international trade on world agricultural production and productivity: evidence from a panel of 126 countries 1962-2014," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(2), March.
    10. Nam, Jaejun & Kim, Nayeon, 2025. "Limits of Knowledge Spillovers: Why Developing Economies Struggle to Catch Up," MPRA Paper 126362, University Library of Munich, Germany.
    11. Diego Romero-Ávila, 2013. "Is Physical Investment The Key To China'S Growth Miracle?," Economic Inquiry, Western Economic Association International, vol. 51(4), pages 1948-1971, October.
    12. Dieudonné Mignamissi & Bernard Nguekeng, 2022. "Trade openness-industrialization nexus revisited in Africa," Economic Change and Restructuring, Springer, vol. 55(4), pages 2547-2575, November.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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