The empirics of trade and growth: Where are the policy recommendations?

Klaus Wälde and Christina Wood

No 09/00, Dresden Discussion Paper Series in Economics from Technische Universität Dresden, Faculty of Business and Economics, Department of Economics

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.

Date: 2000
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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? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuddps:0900

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