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Free Trade and Long-Run Growth

Dan Ben-David () and Michael Loewy ()

Working Papers from Tel Aviv

Abstract: What is the impact on output of movement towards free trade? Can trade liberalization have a permanent effect on output levels, and more importantly, does it have an impact on steady-state growth rates? The model developed here emphasizes the role that knowledge spillovers emanating from heightened trade can have on long run growth rates.

Keywords: INTERNATIONAL TRADE; ECONOMIC GROWTH (search for similar items in EconPapers)
JEL-codes: F10 F14 O47 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1996
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