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Explaining TFP Growth rates: Dissimilar effect of openness between different income groups of countries

González, Germán and Constantín, Sebastián (2008): Explaining TFP Growth rates: Dissimilar effect of openness between different income groups of countries.

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Abstract

The discussion about the relationship between openness and economic growth is still open. The dissent is about the theoretical foundation of the relationship, and about the robustness of the positive effect that is presented in the empirical arena. Our paper has the purpose of incorporating new evidence to the discussion. To do that, we improve the process of TFP estimation and use new data sources. Our principal result is that there are important differences between groups of countries with regard to the relevant factors that explain the technological performance.

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