@techreport{NBERw5582,
 title = "Trade-Induced Investment-led Growth",
 author = "Richard E. Baldwin and Elena Seghezza",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5582",
 year = "1996",
 month = "May",
 URL = "http://www.nber.org/papers/w5582",
 abstract = {This paper presents five theoretical openness-and-growth links that can account for trade-induced investment-led growth.  The links are all demonstrated with neoclassical growth models developed in the context of trade models that allow for imperfect competition and scale economies.  This sort of old-growth-theory-in-a-new-trade-model has not been thoroughly explored in the literature since the profession skipped from old-growth-old-trade models straight to new-growth-new- trade models.  Nonetheless, such models are necessary to explain several key aspects of the econometric evidence on trade and growth. For example, cross-country data suggests that openness influences growth only via its effect on investment, and suggests that openness promotes investment in all countries whatever the capital-intensive of their exports (contrary to predictions of the old-growth-old-trade models).},
}