1887

UN Department of Economic and Social Affairs (DESA) Working Papers

The UN Department of Economic and Social Affairs (DESA) Working Papers aim to stimulate discussion and critical comment on the broad range of economic, social and environmental issues associated with the United Nations Development Agenda.

English

Openness and Growth

What Have We Learned?

This paper discusses recent evidence regarding the existence of a cross-country empirical relationship between openness to international trade and economic growth. I discuss the empirical contributions of Warner (2003), Dollar and Kraay (2002), and Wacziarg and Welch (2003), and argue that these studies fail to convincingly establish a positive link between trade and growth. I also discuss the 1990-2003 experience and show that growth does not display a significant correlation with any measure of trade openness over this period.

English

Keywords: Economic Growth, Openness, Trade Policy. Cross-Country Growth Regressions
JEL: O11: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Macroeconomic Analyses of Economic Development; O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations; O47: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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