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Institutions and Trade: Competitors or Complements in Economic Development?

Sambit Bhattacharyya, Steve Dowrick and Jane Golley ()

The Economic Record, 2009, vol. 85, issue 270, 318-330

Abstract: This article contributes to the debate over the empirical relationship between trade openness and economic development. Unlike previous studies which treat trade openness and institutions as competitors in economic development, we find evidence that they are in fact complements. We also find that in order for a country to benefit from trade, its institutional quality has to be above a certain threshold level. These results are suggestive of an important complementary role for trade openness and institutions in economic development. Copyright © 2009 The Economic Society of Australia.

Date: 2009
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Related works:
Working Paper: INSTITUTIONS AND TRADE: COMPETITORS OR COMPLEMENTS IN ECONOMIC DEVELOPMENT? (2008) Downloads
Working Paper: Institutions and Trade: Competitors or Complements in Economic Development? (2007) Downloads
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