Trade liberalization and Growth

Greenaway, David; Leybourne, Steve; Sapsford, David

doi:10.1007/978-1-4615-6203-0_4

Cited by 19 publications

(2 citation statements)

References 13 publications

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“…Keynesian economists believe that reduction of import duties under an import liberalization policy (easy fiscal) contributes to an excess of imports over exports, hence a foreign trade deficit (Froyen, 1996). Greenway et al (1997) in studies on 13 developing countries found a mixed result on the relationship between trade liberalization and exports, and GDP growth. They suggested for evaluation of individual cases to decide whether liberalization is the most effective way of promoting exports and GDP growth; including their concern that LDCs undergoing trade liberalization under WTO rules, unaccompanied by technological change, may get locked into a 'development trap' and 'terms of trade deterioration' (Aslam & Jomo, 2001;Greenway et al, 1997;Gupta & Choudhry, 1997;Stiglitz, 2000).…”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…Greenway et al (1997) in studies on 13 developing countries found a mixed result on the relationship between trade liberalization and exports, and GDP growth. They suggested for evaluation of individual cases to decide whether liberalization is the most effective way of promoting exports and GDP growth; including their concern that LDCs undergoing trade liberalization under WTO rules, unaccompanied by technological change, may get locked into a 'development trap' and 'terms of trade deterioration' (Aslam & Jomo, 2001;Greenway et al, 1997;Gupta & Choudhry, 1997;Stiglitz, 2000). The United Nations Conference on Trade and Development (UNCTAD) in their Trade Development Report (TDR) 1999, found that rapid trade liberalization generates wider trade deficits in many developing countries (Khor, 2000).…”

Section: Brief Literature Reviewmentioning

confidence: 99%

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Impacts of Trade Liberalization on Export Performance in Bangladesh: An Empirical Investigation

Hoque

Yusop

2012

South Asia Economic Journal

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In the backdrop of persistent trade deficit, Bangladesh has been extensively liberalizing its trade regime since 1992 in order to achieve higher export performance and GDP growth. However, despite the liberalization, imports are still growing faster than exports, increasing trade deficit. The article empirically examines the impacts of trade liberalization on export performance in Bangladesh, using the ARDL ‘Bounds Test’ approach with annual time series data. Empirical results indicate that trade liberalization is having statistically significant but low impact on aggregate export. Neither capital stock as a technology transfers nor liberalization through reduction and withdrawal of export duties shows a significant impact on export performance. Exports are mostly stimulated by GDP growth. The interaction of liberalization with GDP increases exports a little, hence improving the trade balance. However, the liberalization enhances imports compared to exports hence the trade deficit. Therefore, a combined and consistent policy to promote GDP growth, technology transfers and domestic price stability, including education, infrastructures and backward linkage industries is essential in order to achieve higher export performance in Bangladesh.

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Section: Brief Literature Reviewmentioning

confidence: 99%

Section: Brief Literature Reviewmentioning

confidence: 99%

Impacts of Trade Liberalization on Export Performance in Bangladesh: An Empirical Investigation

Hoque

Yusop

2012

South Asia Economic Journal

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Does globalization hurt the poor?

Agénor

2004

International Economics and Economic Policy

122

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This paper examines analytically and empirically the extent to which globalization affects the poor in developing countries. I begin with a description of various channels through which trade openness and financial integration may have an adverse effect on poverty. I also stress the possible non-linearities involved – possibilities that have been seldom recognized in the existing literature. I then present cross-country regressions that relate measures of real and financial integration to poverty. The regressions control for changes in income per capita, as well as various other macroeconomic and structural variables, such as inflation, changes in the real exchange rate and the terms of trade, and schooling indicators. I use both individual indicators of trade and financial openness, and a “globalization index” based on principal components analysis, and test for both linear and nonlinear effects. The results suggest the existence of an inverted U-shape relationship between globalization and poverty. At low levels, globalization appears to hurt the poor; but beyond a certain threshold, it seems to reduce poverty – possibly because it brings with it renewed impetus for reform. Thus, globalization may hurt the poor not because it went too far, but rather because it did not go far enough. Copyright Springer-Verlag Berlin Heidelberg 2004Globalization, poverty, cross-country regressions,

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Trade reform, intermediation and corruption

Mandal

Marjit

2013

Economic Modelling

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Trade liberalization and Growth

Cited by 19 publications

References 13 publications

Impacts of Trade Liberalization on Export Performance in Bangladesh: An Empirical Investigation

Impacts of Trade Liberalization on Export Performance in Bangladesh: An Empirical Investigation

Does globalization hurt the poor?

Trade reform, intermediation and corruption

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