Testing for Trade-Induced Investment-Led Growth

Baldwin, Richard; Seghezza, Elena

doi:10.3386/w5416

Cited by 51 publications

(37 citation statements)

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“…Baldwin and Seghezza (1996) examine the benefits of integration by employing trade barriers both in growth and investment equations but find no evidence of a technology-boosting impact. However, they note that the investment coefficient in the growth equation is likely to pick up some of the technology impact on growth, and, thus, it is hardly possible to isolate the trade impact from innovation.…”

Section: Benefits Of Economic Integrationmentioning

confidence: 99%

European Integration, Productivity Growth and Real Convergence

Kutan

Yigit

2004

SSRN Journal

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This paper derives a stochastic endogenous growth model to investigate the impact of European Union (EU) integration on convergence and productivity growth. The theoretical model implies both temporary and permanent positive effects of the integration process. The empirical part of the analysis uses structural break tests and data envelopment analysis to examine the accession process of five recent members to the EU15. The results show (i) endogenously identified accession dates as structural breaks, (ii) improved rates of productivity growth after accession over and above the Union benchmark level, and (iii) increased pace of overall growth due to capital accumulation as a result of institutional features of the Union such as Structural and Cohesion Funds. These findings support the theoretical model, implying that economic integration is beneficial for member countries, especially from a long-run perspective, and Cohesion and Structural funds help the new members catch up with the core-EU members' standard of living. r

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Section: Benefits Of Economic Integrationmentioning

confidence: 99%

European Integration, Productivity Growth and Real Convergence

Kutan

Yigit

2004

SSRN Journal

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“…This reallocation generates efficiency gains that increase the level of GDP, but there are doubts whether these level effects are temporary or permanent. According to Levine and Renelt (1992); Baldwin and Seghezza (1996), there should be an indirect channel that goes from trade to investment and then growth. An equally likely and plausible explanation is that the standard measures of openness have been adopted.…”

Section: Panel Data Estimation's Resultsmentioning

confidence: 99%

“…Baldwin and Seghezza (1996), who attempted to indentify the mechanisms linking trade and growth, particularly used a theoretical model that establishes a link between trade liberalization and investment-led growth. The theoretical model assumes each country has a traded and non-traded goods sector with the traded goods sector being relatively capital intensive.…”

Section: Literature Reviewmentioning

confidence: 99%

Capital Intensity, Openness, and the Economic Growth of the Asean 5

Setyari

Rustariyuni

Aswitari

2016

JIEB

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“…Frankel and Romer (1996) finds that trade has significant positive effect on income. Baldwin and Seghezza (1996) put emphasis on the effect of the European integration on the growth. They developed two models, the first one being the per capita GDP growth model.…”

Section: Background Literaturementioning

confidence: 99%

Geni̇şleyen Bi̇r Avrupa’da Ülke Spesi̇fi̇k Yakinsama Davranişi

Pehlivan

Utkulu

2015

Dokuz Eylül Üniversitesi İşletme Fakültesi Dergisi

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European Union is the main interest of this paper on account of the longestablished integration from 1950's. This paper examines the process of convergence in relative GDP per capita across European Union countries and candidate countries. As we found cross-section dependence, we present second generation panel cointegration tests of the theory for the European Union countries and candidate countries for the period 1990-2011. This paper also shows country-specific conditional and unconditional convergence at the long-run model by way of using Common Correlated Effect Model. This contribution gives crucial information about the European Union countries and candidate countries.

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Testing for Trade-Induced Investment-Led Growth

Cited by 51 publications

References 0 publications

European Integration, Productivity Growth and Real Convergence

European Integration, Productivity Growth and Real Convergence

Capital Intensity, Openness, and the Economic Growth of the Asean 5

Geni̇şleyen Bi̇r Avrupa’da Ülke Spesi̇fi̇k Yakinsama Davranişi

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