The Empirics of Trade and Growth: Where are the Policy Recommendations ?

Waelde Klaus and Christina Wood
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Waelde Klaus: European Commission-Brussels and University of Dresden-Germany and CESifo and IRES-Université Catholique de Louvain
Authors registered in the RePEc Author Service: Klaus Wälde

No 2004013, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: Existing literature repeatedly documented a strong correlation between trade and growth. It has also shown a causal effect of imports (though not necessarily exports) on growth in simultaneous equation models but to a lesser extent in Granger-causality tests. Export and import taxes have sometimes been found to negatively affect growth. Drawing policy conclusions from these general findings for a particular country is difficult not only because of the contradictory results but also because of potential second best world effects and the implied endogeneity of trade policy. Policy recommendations for a specific country require a careful analysis of market and institutional arrangements and can not be based on the existing cross-country literature.

Keywords: Theoretical and Empirical Trade and Growth Studies; Policy Recommendations (search for similar items in EconPapers)
JEL-codes: F13 O1 (search for similar items in EconPapers)
Pages: 20
Date: 2004-03-01
New Economics Papers: this item is included in nep-afr
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: The empirics of trade and growth: where are the policy recommendations? (2004)
Working Paper: The empirics of trade and growth: where are the policy recommendations? (2004)
Working Paper: The empirics of trade and growth: Where are the policy recommendations? (2000)
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