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• W3122148088 abstract "Because international trade theory has not provided an unambiguous prediction on the impact of trade on growth, a vast literature tried to identify the relationship empirically. After summarizing the influential large country case studies of the 1970s and early 1980s - which showed the folly of the import substitution strategy and emphasized outward-oriented policies as a key component of viable long-term growth strategies - this paper focuses on the recent literature. Early cross-country regressions largely concluded that export growth had a positive impact on economic performance. However, these regressions faced some econometric problems and lacked robustness, and the paper goes on to describe how the literature evolved to overcome these shortcomings. Generally, the positive link between openness and growth was confirmed but recent regressions remain subject to methodological problems. The paper then reviews studies that have tried to address the relationship between trade and growth by analyzing the impact of openness on productivity. These studies conclude that trade openness have a positive impact on growth. Finally, the paper reviews the literature on the link between trade liberalization and other reforms, concluding that supportive macroeconomic and structural policies enhance the benefits of trade liberalization." @default.
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• W3122148088 date "2006-01-01" @default.
• W3122148088 modified "2023-09-28" @default.
• W3122148088 title "A History of Empirical Literature on the Relationship between Trade and Growth" @default.
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