NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Openness and Growth: What's the Empirical Relationship?

Robert E. Baldwin

NBER Working Paper No. 9578
Issued in March 2003
NBER Program(s):   ITI

There is still disagreement among economists concerning how a country's international economic policies and its rate of economic growth interact, despite a number of multi-country case studies utilizing comparable analytical frameworks, numerous econometric studies using large cross-country data sets, and important theoretical advances in growth theory. This paper briefly surveys this literature and points out the main reasons for the disagreements. Particular attention is given to an important study by Francisco Rodriguez and Dani Rodrik (2001) criticizing the conclusion of a number of recent multi-country statistical studies that openness is associated with higher growth rates. Rodriguez and Rodrik show that openness simply in the sense of liberal trade policies seems to be no guarantee of faster growth. However, the conclusion of most researchers involved in either country studies or multi-country statistical tests that lower trade barriers in combination with a stable and non-discriminatory exchange-rate system, prudent monetary and fiscal policies and corruption-free administration of economic policies promote economic growth still seems to remain valid.

download in pdf format
   (203 K)

email paper

This paper is available as PDF (203 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9578

Published:

Users who downloaded this paper also downloaded these:
Baldwin Openness and Growth: What's the Empirical Relationship?
Harrison w5221 Openness and Growth: A Time-Series, Cross-Country Analysis for Developing Countries
Barro w5698 Determinants of Economic Growth: A Cross-Country Empirical Study
Hallak and Levinsohn w10244 Fooling Ourselves: Evaluating the Globalization and Growth Debate
Dow, Gorton, and Krishnamurthy w9758 Equilibrium Asset Prices Under Imperfect Corporate Control
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us