This paper argues that the empirical trade-growth relationship should be modelled using a dynamic panel data approach … than previous results. They confirm the existence of a strong causal effect of trade on growth but fail to find evidence … for trade as an independent factor of divergence. Hence, one cannot blame trade as such for the disappointing performance …

While theoretical models suggest that trade is likely to increase productivity and income levels, the empirical … evidence is rather mixed. For some countries, trade has a strong impact on growth, whereas for other countries there is no or … even a negative linkage. We examine one likely prerequisite for a welfare increasing impact of trade, that is, the role of …

recessions tend to lead to falling trade and protectionism. The sensitivity of trade to global economic conditions is not simply …