Nonlinearity between Trade Openness and Economic Development

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Title:	Nonlinearity between Trade Openness and Economic Development
Authors:	Kim, Dong-hyeon;Lin, Shu-chin;Suen, Yu-bo
Contributors:	淡江大學經濟學系
Date:	2011-04
Issue Date:	2012-06-14 10:13:40 (UTC+8)
Publisher:	Malden: Wiley-Blackwell Publishing Ltd.
Abstract:	This paper utilizes the instrumental variable threshold regressions approach to reassess the trade–development link. It finds evidence that trade openness contributes to uneven development. Greater trade openness tends to have beneficial effects on real development of high-income countries. For low-income ones, however, trade openness appears to influence real income in a significant and negative way. The data also reveal that greater trade openness has a positive effect on capital accumulation, productivity growth, and financial development in high-income countries, but a negative impact in low-income ones.
Relation:	Review of Development Economics 15(2), pp.279-292
DOI:	10.1111/j.1467-9361.2011.00608.x
Appears in Collections:	[Graduate Institute & Department of Economics] Journal Article

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