Josheski, Dushko and Lazarov, Darko (2012): International trade and Economic growth: cross-country evidence. Published in: GRP International Journal of Business and Economics , Vol. Vol. 1, No. No.2
This is the latest version of this item.
Download (183Kb) | Preview
Many empirical studies have been done to investigate whethere growth is influenced by international trade. But despite the great effort that has been devoted to studying the issue, there is little persuasive evidence concerning the effect of trade on growth. The main subject of our paper is to summarize the main findings based on empirical research that have been done to investigate the relationship between the trade and economic growth by using data for 208 regions and countries in OLS regression analysis. Our results from empirical investigation show: 1) the ratio of trade volume (sum of exports and imports at current prices-current openness or sum of exports plus sum of imports) to GDP as a proxy of trade openness has positive effect on economic growth, 2) black market premium as a proxy for imbalance in macroeconomic policies has negative effect, 3) in the presence of macroeconomic policies, trade has statistically and economic significant positive influence on growth, and 4) in an institutional environment trade lacks influencing growth, the coefficient on institutions is positive and statistically significant.
|Item Type:||MPRA Paper|
|Original Title:||International trade and Economic growth: cross-country evidence|
|Keywords:||International trade, economic growth, institutions, macroeconomic imbalances|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies|
|Depositing User:||DJ Josheski|
|Date Deposited:||06. Nov 2012 11:15|
|Last Modified:||13. Feb 2013 09:58|
1.Andy C. C & KwanJohn A. (1991). Cotsomitis. Economic Growth and the Expanding Export Sector: China 1952-1985,International Economic Journal, 5(1): 105 – 116.
2.Bülent Ulaşan, (2012), "Openness to International Trade and Economic Growth: A Cross-Country Empirical Investigation ", Economics: The Open-Access, Open-Assessment E-Journal [Distributor]
3. Chen,Huan (2009), A Literature Review on the Relationship between Foreign Trade and Economic Growth,International journal of economics and finance
4. Dollar, David and Kraay, Aart, Growth is Good for the Poor (April 2001). World Bank Policy Research Working Paper No. 2587.
5. Ghartey. E. E. (1993). Casual Relationship between Exports and Economic Growth: Some Empirical Evidence innTaiwan, Japan and the US, Applied-Economics. (9): 1145-1152
6.Jung, S. W., Marshall. Exports (1985). Growth and Causality in Developing Countries. Journal of Development Economics, (18):1-12.
7.Mankiw,Romer,Weil(1992), Acontribution to the empirics of the economic growth, The quarterly journal of economics, Vol107,Issue,2 pp.407-437
8.Frankel, Jeffrey A. and David Romer (1999). “Does Trade Cause Growth?” The American Economic Review,(June) 379-399.
9.Robert, M. Solow (1956) "A Contribution to the Theory of Economic Growth" Quarterly Journal of Economics. Vol. 70 (1) pp. 65-94.
10.Shan & Fiona Sun. (1998). On The Export-led Growth Hypothesis: The Econometric Evidence From China. Applied Economics, (30).
11.Shan, J. & F. Sun. (1998b). On the Export-led Growth Hypothesis: The econometricEvidence from China. Applied Economics, 30: 1055-1065.
12. Fukuda,S., Hideki,T.,(1995), Conditional Convergence in East Asian Countries: The Role of Exports in Economic Growth, University of Chicago Press, ISBN: 0-226-38670-
Available Versions of this Item
- International trade and Economic growth: cross-country evidence. (deposited 06. Nov 2012 11:15) [Currently Displayed]