Does International Trade Cause Economic Growth? A Survey

Singh, Tarlok

doi:10.1002/9781444343991.ch7

Cited by 9 publications

(10 citation statements)

References 199 publications

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“…The support for the significant effects of exports on output is consistent with several studies supporting the export‐led growth hypothesis (see Singh, , ), but is at variance with the findings of the study by Giles et al . () conducted for the period 1963–1991 for New Zealand.…”

Section: Resultssupporting

confidence: 89%

“…Microeconomic research examining the relationship between trade and productivity (growth) that increased since the mid‐1990s suggests that it is the most productive and efficient firms that tend to enter the export market and export more (see Greenaway & Kneller, , , ; Greenaway et al ., ; Lopez, ; Wagner, ; Singh, , ). This suggests that improvements in firm‐level efficiency and productivity would contribute to increase in exports.…”

Section: Resultsmentioning

confidence: 99%

“…In contrast, the post‐neoclassical theory of endogenous economic growth (Romer, ; Lucas, ) supports positive effects of international trade on output and economic growth. Several influential surveys have extensively reviewed the macroeconomic and microeconomic empirical evidence on the relationship between trade and economic growth, and reinforced the theoretically mixed and time‐inconsistent support for the gains from trade (see Greenaway & Winters, ; Giles & Williams, ,b; Rodriguez & Rodrik, ; Winters, ; Lopez, ; Wagner, ; Singh, , ). While the academic debate over the gains from international trade remains unresolved, the multi‐lateral organisations, such as the World Bank, International Monetary Fund, and the World Trade Organization and its predecessor, the General Agreement on Tariffs and Trade, unambiguously advocate the removal (reduction) of tariff and non‐tariff barriers to trade and emphasise the adoption of multi‐lateral (global) trade liberalisation policies.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

On the International Trade and Economic Growth Nexus in New Zealand

Singh

2015

J of App Econs and Policy

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This study examines the effects of international trade and investment on output and tests the Granger‐causal nexus among trade, investment and economic growth in New Zealand for the period 1954–2007. The results provide consistent support for the long‐run effects of trade and investment on output. The optimal single‐equation and the vector autoregression‐based system estimates of the model consistently suggest positive and significant long‐run effects of exports and investment on output. The effects of imports on output are positive across all and statistically significant across most estimators. The Johansen test for cointegration suggests the presence of one equilibrium relationship among the model variables. The JMN test for cointegration with structural breaks provides mixed support, while the end‐of‐sample cointegration breakdown tests lend dominant support for cointegration among the model variables. The positive and significant long‐run effects of exports and investment on output underline the need for the promotion of exports and increase in investment to foster higher levels of output and economic growth.

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Section: Resultssupporting

confidence: 89%

Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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On the International Trade and Economic Growth Nexus in New Zealand

Singh

2015

J of App Econs and Policy

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“…Romer, 1993; Terra, 1998; Temple, 2002); trade openness and economic growth (e.g. Edwards, 1993; Frankel and Romer, 1999; Greenaway et al., 2002; Singh, 2010); trade openness and the environment (e.g. Frankel and Rose, 2005; Chintrakarn and Millimet, 2006); trade openness and corruption (e.g.…”

Section: Introductionmentioning

confidence: 99%

A New Measure of Trade Openness

Squalli

Wilson²

2011

World Economy

180

178

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Trade openness, popularly measured as (X + M)/GDP in the hundreds of studies published to date, consistently considers the world's biggest trading countries such as the USA, the UK, Japan and Germany to be closed economies, irrespective of the data set used. This study suggests a composite trade share measure that more completely reflects reality by combining two important dimensions of trade openness: trade share and the relative importance of a country's trade level to total world trade. Robustness tests support the new proposed measure in lieu of the conventional measure of openness and suggest that the latter may not only be incomplete but may also overstate the impact of trade on such things as income and the environment.

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“…3 3 For a review and discussion on the micro‐founded effects of trade on productivity and growth, see Girma et al (2004), Greenaway and Kneller (2004, 2007), Greenaway et al (2005), Lopez (2005) and Wagner (2007). For a survey of literature on the effects of international trade on economic growth, see Singh (2010). …”

mentioning

confidence: 99%

International Trade and Economic Growth Nexus in Australia: A Robust Evidence from Time‐Series Estimators

Singh

2011

World Economy

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This study examines the effects of international trade on output and tests the null of Granger non‐causality between trade and economic growth in Australia. The single‐equation IV‐GMM, DOLS, FMOLS and NLLS and the system‐based ML estimates consistently support the positive and significant long‐run effects of exports and investment on output. The effects of imports are consistently negative across all the estimates. The OLSEG, RLS and ARDL‐ECM estimates provide a mixed and weak and that overparameterised level‐VAR estimates no support for the effects of trade on output. The estimates of the model with structural breaks provide a dominant support for the cointegrating relationship among variables. In conclusion, the evidence supporting the positive and significant long‐run effects overwhelms the evidence providing a mixed, weak or no support for the effects of trade on output. The results of the study can be inductively generalised to mimic the findings of the literature at large and to suggest that a part of the inconclusiveness over the gains of trade could analogously be ascribed to the use of different methodologies and test statistics across studies. The results support the acceleration of exports and investment to foster the higher levels of output and economic growth.

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Does International Trade Cause Economic Growth? A Survey

Cited by 9 publications

References 199 publications

On the International Trade and Economic Growth Nexus in New Zealand

On the International Trade and Economic Growth Nexus in New Zealand

A New Measure of Trade Openness

International Trade and Economic Growth Nexus in Australia: A Robust Evidence from Time‐Series Estimators

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