Trade Liberalisation, Economic Crises and Growth

Rodney Falvey, Neil Foster-McGregor and Sir David Greenaway ()

Discussion Papers from University of Nottingham, GEP

Abstract: Many economic reforms are undertaken at a time of economic crisis. But is this a good time to undertake trade reform? In this paper we investigate whether an economic crisis at the time of trade liberalisation affects a country’s subsequent growth performance. We employ threshold regression techniques on five crisis indicators commonly used in the literature, to identify the relevant “crisis values” and to estimate the differential post-liberalisation growth effects in the crisis and non-crisis regimes. We find that the post-liberalisation growth depends on the characteristics of the crisis. Broadly speaking, an internal crisis implies lower growth and an external crisis higher growth relative to the non-crisis regime. These effects appear to be present in both the short and longer runs.

Keywords: Trade liberalisation; Growth; Crises (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.nottingham.ac.uk/gep/documents/papers/2008/08-14.pdf (application/pdf)

Related works:
Journal Article: Trade Liberalization, Economic Crises, and Growth (2012)
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:not:notgep:08/14

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, GEP School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().