Trade Liberalization And Growth: New Evidence
- Topics:
- Import Export
- Tags:
- Finance,
- Free Trade,
- Growth,
- Liberalization
- Source:
- Stanford Knowledgebase
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Overview: This article revisits the empirical evidence on the relationship between economic integration and economic growth. It present an updated dataset of openness indicators and trade Liberalization dates for a wide cross-section of countries in the 1990s. Secondly, it extends the Sachs andWarner (1995) study of the relationship between trade openness and economic growth to the 1990s, discussing recent criticisms of their measurement and estimation framework. The results suggest that the cross-sectional findings of Sachs and Warner are sensitive to the period under consideration. Thirdly, and most importantly, it presents new evidence on the time paths of economic growth, physical capital investment, and openness around episodes of trade policy liberalization. In sharp contrast to cross-sectional results, it finds that liberalization has, on average, robust positive effects on growth, openness and investment rates within countries. It is illustrated that these large sample findings with detailed case studies in a sub sample of representative countries.
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Format: PDF | Size: 1,198KB | Date: Nov 2003 | Pages: 91
