Trade and Growth at Different Stages of Economic Development

Dong-Hyeon Kim and Shu-Chin Lin

Journal of Development Studies, 2009, vol. 45, issue 8, 1211-1224

Abstract: The paper investigates whether trade openness contributes to long-run economic growth and the effect varies with the level of economic development. We implement this analysis through the instrument-variable threshold regressions approach. The empirical evidence shows that there indeed exists an income threshold above which greater trade openness has beneficial effects on economic growth and below which heightened trade has detrimental consequences. It implies that greater international trade and integration may contribute to more diverging economies. In addition, the relationship of trade with growth is found to work possibly through both investment and productivity growth channels.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00220380902862937 (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:45:y:2009:i:8:p:1211-1224

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

DOI: 10.1080/00220380902862937

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 ().