Relationship between Trade Liberalisation, Growth and Balance of Payments in Developing Countries: An Econometric Study

Arbeitspapier

The objectives of this paper are to study the impact of liberalisation on trade deficits and current accounts of developing countries. It is expected that trade liberalisation would promote economic growth from the supply side by leading to a more efficient use of resources, by encouraging competition, and by increasing the flow of ideas and knowledge across national boundaries. Trade liberalisation could lead to faster import growth than export growth and hence the supply side benefits may be offset by the unsustainable balance of payments position. This study uses panel data of 42 countries (both time-series and cross-section dimension) to estimate the effect of trade liberalisation and growth on trade balance while controlling for other factors such as income terms of trade. The major finding of the study is that trade liberalisation promotes growth in most cases, (Part 1 of this study) the growth itself has a negative impact on trade balance and this in turn could have negative impacts on growth through deterioration in trade balance and adverse terms of trade. Our conclusion is that trade liberalisation could constrain growth through adverse impact on balance of payments.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: HWWA Discussion Paper ; No. 286

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Current Account Adjustment; Short-term Capital Movements ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Trade Policy; International Trade Organizations ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Empirical Studies of Trade
• Thema: Panel data ; Income Terms of Trade ; Dynamic Optimisation ; Dynamic panel model ; Aussenhandelsliberalisierung ; Wirtschaftswachstum ; Handelsbilanz ; Zahlungsbilanzungleichgewicht ; Schätzung ; Terms of Trade ; Dynamische Optimierung ; Entwicklungsländer

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Parikh, Ashok
• Ereignis: Veröffentlichung
• (wer): Hamburg Institute of International Economics (HWWA)
• (wo): Hamburg
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/19258
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ