Does international trade promote economic growth? Europe, 19th and 20th centuries

Oscar Bajo-Rubio () and María del Carmen Ramos-Herrera
Authors registered in the RePEc Author Service: Maria del Carmen Ramos Herrera ()

No 1358, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: In this paper, we analyse the relationship between international trade and economic growth in an unbalanced panel of 20 European countries in a long-term perspective, since the mid-19th century to present days, differentiating between the periods before and after the start of the Second World War. To this end, we perform Granger-causality tests between exports and GDP, and between imports and GDP, following the novel methodology of Juodis et al. (2021) for panel data models with large cross-sectional and time series dimensions. Our results support the existence of a bi-directional relationship between both trade variables and GDP, for the whole period and across subperiods.

Keywords: International trade; Economic growth; Europe; Granger-causality (search for similar items in EconPapers)
JEL-codes: F41 F43 N10 O47 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-eec, nep-eur, nep-gro, nep-his and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1358

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