Trade and growth: A gravity approach.
The impact of international trade, or 'openness,' on economic growth is difficult to quantify because of reverse causality. In this article, I use recent advances in gravity equation estimation to generate a geography-based instrument for openness à la Frankel and Romer (1999). In contrast with the...
| Publicado en: | Southern Economic Journal Vol. 82; no. 2; pp. 453 - 471 |
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| Formato: | Artículo |
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Wiley-Blackwell
Oct2015
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=110487442&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 110487442 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Oct2015 vid: 82 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 110487442 10.4284/0038-4038-2013.272 ppf: 453 ppct: 18 formats: fmt: – @attributes: type: T – @attributes: type: P size: 283KB tig: atl: Trade and growth: A gravity approach. aug: au: Gervais, Antoine affil: Department of Economics, University of Notre Dame, Notre Dame, IN 46556, USA su: Gravity model (Social sciences) Economic development Economic policy International trade -- Econometric models Mathematical models of economics sug: subj: Gravity model (Social sciences) Economic development Economic policy International trade -- Econometric models Mathematical models of economics keyword: F1 O4 F1 O4 ab: The impact of international trade, or 'openness,' on economic growth is difficult to quantify because of reverse causality. In this article, I use recent advances in gravity equation estimation to generate a geography-based instrument for openness à la Frankel and Romer (1999). In contrast with the benchmark, the new instrument is constructed using consistent and unbiased estimates of the impact of geography on bilateral trade. As a result, the instrument provides stronger identification of the impact of trade on income and increases the efficiency of the two-stage least square estimation. An important advantage of the corrected procedure over the benchmark is that the estimated effect of trade on income remains large, positive, and statistically significant even after controlling for regional indicators and endogenous institutional quality. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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