TY  - JOUR
AU  - Lee,Ha Yan
AU  - Ricci,Luca Antonio
AU  - Rigobon,Roberto
TI  - Once Again, is Openness Good for Growth?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10749
PY  - 2004
Y2  - September 2004
UR  - http://www.nber.org/papers/w10749
L1  - http://www.nber.org/papers/w10749.pdf
N1  - Author contact info:
Ha Yan Lee
E-Mail: hlee@nber.org

Luca A. Ricci
International Monetary Fund
Research Department
700 19th Street, N.W.
Washington, D.C. 20431
E-Mail: lricci@imf.org

Roberto Rigobon
MIT Sloan School of Management
100 Main Street, E62-516
Cambridge, MA 02142
Tel: 617/258-8374
Fax: 617/258-6855
E-Mail: rigobon@mit.edu
AB  - Rodriguez and Rodrik (2000) argue that the relation between openness and growth is still an open question. One of the main problems in the assessment of the effect is the endogeneity of the relation. In order to address this issue, this paper applies the identification through heteroskedasticity methodology to estimate the effect of openness on growth while properly controlling for the effect of growth on openness. The results suggest that openness would have a positive effect on growth, although small. This result stands, despite the equally robust effect from growth to openness.
ER  -