Does trade support global output growth? Further evidence on the global trade – global output connection

Leon Podkaminer

Bank i Kredyt, 2021, vol. 52, issue 1, 23-36

Abstract: Using the standard tools of time series econometrics, this paper suggests that rising international trade may not have been supporting global economic growth (while growing global output seems to have supported growing global trade). Large and persistent trade imbalances, typical since the mid-1970s, are just one possible reason for trade no longer playing the positive role assigned to it in the mainstream trade theories. The second reason relates to the ‘race-to-the-bottom’ tendencies with respect to the wage rates which have developed under globalization.

Keywords: world income; world trade; globalization; wage-led growth; VEC (search for similar items in EconPapers)
JEL-codes: F15 F16 F43 O47 O49 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpbik:v:52:y:2021:i:1:p:23-36

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