The Trade-Induced Learning Effect on Growth: Cross-Country Evidence

Yih-chyi Chuang ()

Journal of Development Studies, 2002, vol. 39, issue 2, 137-154

Abstract: One of the important trade effects on growth is technology diffusion through learning by doing. Chuang [1998] proposed a trade-induced learning theory in which the nature of traded goods and the trading partners are two key factors determining the effectiveness of the trade-induced learning. The former conveys the characteristics that a country can learn; the latter determines the level of technology from which a country can learn. Using cross-country data, this article constructs a set of the trade-induced learning variables by taking into account trading partners and the characteristics of the traded goods and further tests the trade-induced learning hypothesis. The results show that holding other variables constant, trade-induced learning has a positive and significant effect on growth and the estimated effect implies that a one-standard-deviation increase in the trade-induced learning variable is estimated to generate an effect of between 0.4 to 1.0 percentage points on the annual growth rate. Robustness test shows that the trade-induced learning variable passes the extreme-bound analysis and also outperforms other conventional trade variables advocated in the literature.

Keywords: trade-induced learning by doing; economic growth (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00220380412331322781 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:jdevst:v:39:y:2002:i:2:p:137-154

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FJDS20

DOI: 10.1080/00220380412331322781

Access Statistics for this article

Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen

More articles in Journal of Development Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().