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"Does Trade Cause Growth?" - A Comment

  • V. Heinrich Amavilah

    (Gelendale College)

The proposition that trade causes economic growth has enriched international economic theory. Even so, how best to estimate and test for the effects of trade on economic growth remains a challenge to-date, mainly because of the joint determination of the empirical measures of both trade and economic growth. Professors Jeffrey Frankel and David Romer have offered and employed an insightful method of constructiong an IV for trade that is less troubling than previous attempts. Yet the new method too has some small problems. This comment points out those problems and suggests possible improvements.

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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0307001.

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Length: 7 pages
Date of creation: 15 Jul 2003
Date of revision:
Handle: RePEc:wpa:wuwpge:0307001
Note: Type of Document - WordPerfect; prepared on IBM PC - PC; to print on HP/PostScript; pages: 7 ; figures: included. I never published this piece and now I would like to reduce our mailing and xerox cost by posting it.
Contact details of provider: Web page: http://128.118.178.162

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  1. Francisco Alcalá & Antonio Ciccone, 2001. "Trade and productivity," Economics Working Papers 580, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2002.
  2. Voxi Heinrich Amavilah, 1998. "German aid and trade versus Namibian GDP and labour productivity," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 689-695.
  3. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  4. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  5. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
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