Openness and Growth in Central-Eastern European Countries

Rosa Capolupo () and Giuseppe Celi

GE, Growth, Math methods from University Library of Munich, Germany

Abstract: We present evidence of the relationship between trade-openness and growth in the sample of former communist countries before and after the transition from a central planned economy (CPE) to a market economy by applying standard OLS and panel estimation techniques. The main finding is that during the transition the importance of openness on growth per capita has increased sharply by changing the coefficient from a negative sign to a positive and significant one. The result seems to be robust to (i) estimation methods , (ii) different measures of openness adopted and (iii)consistent with the integration view, which states that a higher degree of trade openness spurred by market incentives and comparative advantages enhances the per capita growth rate of economies.

Keywords: economic growth; transition economies; trade openness (search for similar items in EconPapers)
JEL-codes: G30 O42 O47 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2005-06-06
New Economics Papers: this item is included in nep-eec, nep-fin and nep-tra
Note: Type of Document - pdf; pages: 28
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Openness and Growth in Central Eastern European Countries (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpge:0506002

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