IDEAS home Printed from https://ideas.repec.org/p/een/crwfrp/1413.html
   My bibliography  Save this paper

Trade Liberalisation and Economic Growth in Developing Countries: Does Stage of Development Matter?

Author

Listed:
  • Ramesh Paudel

    (Crawford School of Public Policy, The Australian National University)

Abstract

This paper surveys the available literature on liberalisation and growth, updates the widely used Sachs and Warner (1995) index of trade liberalisation for 193 countries up to 2010, and then investigates the impacts of trade liberalisation in economic growth using a dynamic growth model for a large set of panel data covering the period of 1985-2010. The results show that the impact of trade liberalisation on economic growth differs across countries depending on the stage of economic development. Lower-middle income countries, on average, benefit at least 3% more compared to other developing countries from the trade liberalisation. This finding makes a strong case for taking into account the stage of economic development in making policy recommendations for trade policy reforms, departing from the standard ÒWashington ConsensusÓ approach.

Suggested Citation

  • Ramesh Paudel, 2014. "Trade Liberalisation and Economic Growth in Developing Countries: Does Stage of Development Matter?," Crawford School Research Papers 1413, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:crwfrp:1413
    as

    Download full text from publisher

    File URL: http://ssrn.com/abstract=2545735
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean-Claude BERTHELEMY, 2018. "Exits from the Poverty Trap and Growth Accelerations in a Dual Economy Model," Working Papers P234, FERDI.
    2. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    3. Jean‐Claude Berthelemy, 2021. "Exits from the poverty trap and growth accelerations in a dual economy model," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1197-1215, August.

    More about this item

    Keywords

    liberalisation; economic reform; economic development; economic growth;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:een:crwfrp:1413. 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.

    We have no bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: David Stern (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.html .

    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.