TY  - JOUR
AU  - Frankel,Jeffrey A.
AU  - Romer,David
TI  - Trade and Growth: An Empirical Investigation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5476
PY  - 1996
Y2  - March 1996
UR  - http://www.nber.org/papers/w5476
L1  - http://www.nber.org/papers/w5476.pdf
N1  - Author contact info:
Jeffrey A. Frankel
Kennedy School of Government
Harvard University
79 JFK Street
Cambridge, MA 02138
Tel: 617/496-3834
Fax: 617/496-5747
E-Mail: jeffrey_frankel@harvard.edu

David H. Romer
Department of Economics
University of California, Berkeley
Berkeley, CA 94720-3880
E-Mail: dromer@econ.berkeley.edu
M2  - featured in NBER digest on 1997-02-01
AB  - Countries' geographic characteristics have important effects on their trade, and are plausibly uncorrelated with other determinants of their incomes.  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 suggest that ordinary least squares estimates understate the effects of trade, and that trade has a quantitatively large, significant, and robust positive effect on income.
ER  -