This paper constructs a two-country model to investigate how tariff policy influences productivity growth through adjustments in industry location patterns. The locations of production and innovation are determined based on trade barriers and imperfect knowledge dissemination. Tariff policy has...

Does trade openness cause higher GDP per capita? Since the seminal instrumental variables (IV) estimates of Frankel and Romer [F&R](1999) important doubts have surfaced. Is the correlation spurious and driven by omitted geographical and institutional variables? In this paper, we generalize F&R's...

We build and estimate a structural dynamic general equilibrium model of growth and trade. Trade affects growth through changes in consumer and producer prices that in turn stimulate or impede physical capital accumulation. At the same time, growth affects trade, directly through changes in...

The paper shows that the relationship between GDP per capita and levels of specialization can be predicted differently depending on whether the intensive or the extensive margin is considered. It shows that at the extensive margin countries continuously diversify their exports and that...

This contribution provides evidence for the hypothesis that trade increases growth through its curbing effect on capital taxes. The analysed mechanism includes two different steps and considers the critical points of both the theoretical and empirical studies in this field. In particular, the...

Does trade openness cause higher GDP per capita? Since the seminal instrumental variables (IV) estimates of Frankel and Romer [F&R](1999) important doubts have surfaced. Is the correlation spurious and driven by omitted geographical and institutional variables? In this paper, we generalize F&R's...

This paper investigates the impact of trade openness on economic growth and development for a sample of 85 middle-income countries over the period 1970-2009. The paper employs non-stationary heterogeneous panel cointegration techniques that take into consideration the impact of cross-section...

In this paper we distinguish different qualities of FDI to re-examine the relationship between FDI and growth. We use quot;qualityquot; to mean the effect of a unit of FDI on economic growth. However, this is difficult to establish because it is a function of many different country and project...

The aim of this study is to empirically test the export-led growth hypothesis in the Republic of Macedonia, as small and open economy. In other words, the question trailed is whether by export promotion the country could impinge on its overall economic development. For that purpose, quarterly...