Trade and economic growth: A re-examination of the empirical evidence

Arbeitspapier

While trade integration is often regarded as a principal determinant of economic growth, the empirical evidence for a causal linkage between trade and growth is ambiguous. This paper argues that the effect of trade in dynamic panel estimations depends crucially on the specification of trade. Both from a theoretical as well as an empirical point of view one specification is preferred: the volume of exports and imports as a share of lagged total GDP. For this trade measure, a positive and highly significant impact on economic growth can be found.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: HWWI Research Paper ; No. 123

Classification and Topics

• Classification: Wirtschaft ; Neoclassical Models of Trade ; Economic Growth of Open Economies ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Subject: Openness ; Trade ; Growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Busse, Matthias ; Königer, Jens
• Event: Veröffentlichung
• (who): Hamburgisches WeltWirtschaftsInstitut (HWWI)
• (where): Hamburg
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/57921
• Last update: 10.03.2025, 11:43 AM CET