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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...
Persistent link: https://www.econbiz.de/10013138515
This paper addresses the mechanisms by which trade openness affects growth volatility. Using a diverse set of export concentration measures, we present strong evidence pointing to an important role for export diversification in conditioning the effect of trade openness on growth volatility....
Persistent link: https://www.econbiz.de/10013098217
old joke goes, the rest of the world caught a cold. But that dominance is now being challenged by the rise of rapidly … outline the consequences of this evolving world economic order – in particular, how it is decoupling the business cycles of …
Persistent link: https://www.econbiz.de/10013101221
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...
Persistent link: https://www.econbiz.de/10009240715
This work shows the asymmetric effect of the reduction in transportation costs across different sectors in the process of the Great Divergence. Specifically, the analysis indicates that reductions in transportation costs of industrial goods enhance convergence of the growth rates of trading...
Persistent link: https://www.econbiz.de/10010347039
Can international trade act as the sole engine of growth for an economy? If the answer is yes, what are the mechanisms through which trade operates in transmitting permanent growth? This paper answers these questions with two simple two-country models, in which only one country enjoys sustained...
Persistent link: https://www.econbiz.de/10014182803
Recent empirical evidence shows that gross official capital transactions flow upstream in the international financial markets due to government policy objectives and that they account for the current account surpluses observed in the last decade in the fast-growing emerging economies. Following...
Persistent link: https://www.econbiz.de/10014040358
We study a dynamic general equilibrium model where innovation takes the form of the introduction new goods, whose production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are adapted to be produced using unskilled labor. Our...
Persistent link: https://www.econbiz.de/10014195649
The paper develops a model of proportionate growth to describe the dynamics of the network of international trade flows. We show that a large number of the empirical regularities characterizing international trade - such as the fraction of zero trade flows across pairs of countries, the positive...
Persistent link: https://www.econbiz.de/10013143961
In an integrated world, no country is free from a possible downturn in business cycles, which entails fluctuations of …
Persistent link: https://www.econbiz.de/10013120899