Institutional Affiliation: London School of Economics
Information about this author at RePEc
NBER Working Papers and Publications
|August 1997||Openness, Specialization, and Productivity Growth in Less Developed Countries|
with James Rauch: w6131
Many empirical studies have found a positive relationship between openness and growth in per capita GDP in less developed countries, and economists have produced many explanations for this correlation. However, the existing studies are consistent with all of these theories and thus do not provide direct evidence in support of any one of them. Quah and Rauch  show how increased openness to international trade can lead to increased specialization in models of endogenous growth through learning by doing. These models imply that increased specialization accelerates productivity growth by more fully realizing dynamic economies of scale. In order to test the hypothesis that specialization increases productivity growth in LDCs we first define a Herfindahl index of production specializatio...
Published: Diana Weinhold & James E. Rauch, 1999. "Openness, Specialization, and Productivity Growth in Less Developed Countries," The Canadian Journal of Economics / Revue canadienne d'Economique, vol 32(4). citation courtesy of