IDEAS home Printed from
   My bibliography  Save this paper

Openness and growth in alternative trading regimes.Evidence from EEC and CMEA’s customs unions


  • Rosa Capolupo
  • Giuseppe Celi


While common sense would indicate that trade and growth are positively correlated, it is not clear from a theoretical and empirical perspective whether or not trade is a proximate determinant of growth. The voluminous empirical efforts in this area show mixed findings. Trying to elucidate the ambiguities in the literature we study the nexus between trade flows and growth in three groups of countries: historical EEC, the extreme case of CMEA customs union and a group of transitional economies (TEs), most of which just recently added to the EU member states. The comparator group of former communist countries, in which trade-openness is not spurred by market incentives, should be very informative in explaining the impact of trade on growth. Our main finding, by applying different econometric methodologies, is that either for the EEC or CMEA the coefficient of real openness is negative for the former two samples and positive for the third. For the EEC the indicator of openness shows a positive sign solely when the rate of growth of trade share is considered. The findings prove to be robust to variations in the controlling set, to different econometric techniques, and for the last group of countries to changing in the empirical indicator of openness (inter and intra-industry trade indicators).

Suggested Citation

  • Rosa Capolupo & Giuseppe Celi, "undated". "Openness and growth in alternative trading regimes.Evidence from EEC and CMEA’s customs unions," Working Papers 2005_3, Business School - Economics, University of Glasgow.
  • Handle: RePEc:gla:glaewp:2005_3

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:gla:glaewp:2005_3. 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: (Tedi Racheva). General contact details of provider: .

    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.