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"Does Trade Cause Growth?" - A Comment

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  • V. Heinrich Amavilah

    (Gelendale College)

Abstract

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.

Suggested Citation

  • V. Heinrich Amavilah, 2003. ""Does Trade Cause Growth?" - A Comment," GE, Growth, Math methods 0307001, EconWPA.
  • 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.
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    References listed on IDEAS

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    1. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    2. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 613-646.
    3. 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.
    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, Oxford University Press, vol. 114(1), pages 83-116.
    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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    Cited by:

    1. Ngeleza, Guyslain, 2011. "Institutions, geography, trade, and income per capita: A spatial-simultaneous equation approach," IFPRI discussion papers 1082, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    trade as a cause of economic growth;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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