Institutions and Structural Unemployment: North-South Trade, Openness and Growth

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

Vienna Economics Papers from University of Vienna, Department of Economics

Abstract: In models of endogenous growth, international trade can impact upon growth by allowing access to the innovative products of other countries. Since developing countries do little if any innovation, it is primarily through trade with developed countries that they profit from higher levels of technological development. In this paper we construct an empirical model to estimate trade flows from the North to the South. Using the results of this model we construct a measure of openess to Northern imports, based on the deviation of actual imports from that predicted by our model. We find that this measure of openness is significantly and robustly related to economic growth, suggesting that trade with advanced countries can facilitate growth through the absorption of advanced technology.

JEL-codes: F14 F43 O40 (search for similar items in EconPapers)
Date: 2001-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://papersecon.univie.ac.at/RePEc/vie/viennp/vie0108.pdf (application/pdf)

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:vie:viennp:vie0108

Access Statistics for this paper

More papers in Vienna Economics Papers from University of Vienna, Department of Economics
Bibliographic data for series maintained by Paper Administrator ().