novel theoretical model that establishes a link between trade liberalization and investment-led growth. Estimating equations … domestic protection depresses investment and thereby slows growth. Foreign trade barriers also lower domestic investment, but … the anti-investment effect is weaker and is less robust to sample and specification changes …

This paper studies the investment creation and diversion effects of the EU's Single Market programme (EU92). We first … present empirical evidence which suggests that EU92 caused investment diversion in the European Free Trade Association (EFTA …) nations and investment creation in the EU. The economic logic behind this is simple. Discriminatory liberalization shifts …

This paper presents five theoretical openness-and-growth links that can account for trade-induced investment-led growth …, cross-country data suggests that openness influences growth only via its effect on investment, and suggests that openness … promotes investment in all countries whatever the capital-intensive of their exports (contrary to predictions of the old …