Does Trade Cause Growth?
Bibliographic Data
| ID | 23378688 |
|---|---|
| Authors | Jeffrey A Frankel (Harvard University), David Romer (Department of Economics, University of California, Berkeley, CA 94720.) |
| Year | 1999 |
| Volume | 89 |
| Issue | 3 |
| Pages | 379-399 |
| Publication date | 1999-06-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | American Economic Review (JOURNAL) |
| Journal identifiers | ISSN: 0002-8282 • E-ISSN: 1944-7981 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/aer.89.3.379 |
| OpenAlex | W2011474190 |
| Language | EN |
| Citations received | 612 |
| References cited | 23 |
Examining the correlation between trade and income cannot identify the direction of causation between the two. Countries' geographic characteristics, however, have important effects on trade, and are plausibly uncorrelated with other determinants of income. This paper therefore constructs measures of the geographic component of countries' trade, and uses those measures to obtain instrumental variables estimates of the effect of trade on income. The results provide no evidence that ordinary least-squares estimates overstate the effects of trade. Further, they suggest that trade has a quantitatively large and robust, though only moderately statistically significant, positive effect on income. (JEL F43, O40)
Causation · Econometrics · Economics · Instrumental variable · International economics · Ordinary least squares · Statistics · Uncorrelated · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Global trade and economics · Mathematics
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| Unique citing works | 612 |
|---|---|
| Citations per year | 22,67 |
| Citation span | 1999 - 2026 (28) |
| Citation velocity | current |
| Highly cited | Yes |
| Citation types | Neutral: 552 |