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Trade Openness and Growth: Is There Any Link?

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  • Sarkar, Prabirjit

Abstract

The present study examines the relationship between openness (trade-GDP ratio) and growth. Our cross-country panel data analysis of a sample 51 countries of the South during 1981-2002 shows that for only 11 rich and highly trade-dependent countries a higher real growth is associated with a higher trade share. Time series study of individual country experiences shows that the majority of the countries covered in the sample including the East Asian countries experienced no positive long-term relationship between openness and growth during 1961-2002. Our study of the experience of various regions and groups shows that only the Middle Income group exhibited a positive long-term relationship.

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  • Sarkar, Prabirjit, 2007. "Trade Openness and Growth: Is There Any Link?," MPRA Paper 4997, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4997
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    More about this item

    Keywords

    growth; opening up; liberalization; less developed countries and globalization;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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