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The impact of trade on economic growth

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  • Leitão, Nuno Carlos

Abstract

The purpose of this article is to investigate the impact of marginal intra-industry trade on economic growth. The manuscript questions the economic growth exogenous models. It introduces new proxies to explain the economic growth as in marginal intra-industry trade, foreign direct investment and globalization index. The results indicate that economic growth is a dynamic process. The change of intra-industry has a positive impact on economic growth. This paper confirms relevant theoretical hypothesis as foreign direct investment and globalization promote the economic growth. The good results obtained with GMM system estimator suggest that the building of dynamic theoretical models will be of interest to academic researchers the link between marginal intra-industry trade and economic growth.

Suggested Citation

  • Leitão, Nuno Carlos, 2012. "The impact of trade on economic growth," MPRA Paper 37425, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37425
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    More about this item

    Keywords

    Endogenous models; Panel Data; and United States;
    All these keywords.

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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