Trade, growth and income

Dong-Hyeon Kim

The Journal of International Trade & Economic Development, 2011, vol. 20, issue 5, 677-709

Abstract: This paper uses the instrumental variable threshold regressions approach of Caner and Hansen (2004) to investigate whether the trade's contribution to the standard of living and long-run economic growth varies according to the level of economic development. The empirical evidence shows that greater trade openness has strongly beneficial effects on growth and real income for the developed countries but significantly negative effects for the developing countries. The heterogeneity in the relationships suggests that greater international trade and integration may foster uneven development and hence contribute to more diverging economies. In addition, the link of trade to economic performance is found to work through both capital accumulation and productivity growth channels. Finally, the evidence shows that real effects of trade also depend on the level of financial development, inflation and trade openness.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
http://hdl.handle.net/10.1080/09638199.2011.538966 (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:jitecd:v:20:y:2011:i:5:p:677-709

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJTE20

DOI: 10.1080/09638199.2011.538966

Access Statistics for this article

The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

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