Measuring the Dynamic Gains from Trade

Romain Wacziarg

The World Bank Economic Review, 2001, vol. 15, issue 3, 393--429

Abstract: This article investigates the links between trade policy and economic growth in a panel of 57 countries between 1970 and 1989. It develops a new measure of trade policy openness based on the policy component of trade shares, using it in a simultaneous equations system to identify the effect of trade policy on several determinants of growth. The results suggest a positive impact of openness on economic growth, with the accelerated accumulation of physical capital accounting for more than half the total effect; enhanced technology transmission and improvements in macroeconomic policy account for smaller effects. This decomposition is robust with respect to alternative specifications and time periods. The article also successfully tests whether the model exhaustively captures the effects of trade policy on growth.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.jstor.org/stable/3990108

Related works:
Working Paper: Measuring the Dynamic Gains from Trade (2000)
Working Paper: Measuring the dynamic gains from trade (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:wbecrv:2001:15:3:393--429

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The World Bank Economic Review is currently edited by Eric Edmonds and Nina Pavcnik

More articles in The World Bank Economic Review from World Bank Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().