Trade orientation measurement and consequences

Holger C. Wolf

Estudios de Economia, 1993, vol. 20, issue esp Year 1993, 49-86

Abstract: New trade theory and endogenous growth models have revived the debate on the static and dynamic implications of trade orientation. Alas, a decade of models has produced more ambiguity than clarity, placing a premium on empirical work. Unfortunately, existing indices of trade orientation invite substantial criticism. In the first part of the paper we construct a new measure, based on the difference between actual trade and the trade levels predicted by a factor endowments mode. In the second part, we use the index to examine the link between trade orientation and economic growth.

Date: 1993
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