Empirical Essays on Trade Openness, Total Factor Productivity Growth and Efficiency PDF Download

Author: Michael Henry
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 652

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Author: Sebastian Edwards
Publisher:
ISBN:
Category : Commercial policy
Languages : en
Pages : 44

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For over a century social analysts have debated the connection between trade policy and economic performance. This controversy continues today, even as the world is experiencing an unprecedented period of trade liberalization, and in spite of numerous empirical studies that claim to have found a positive effect of openness on growth. Two issues have been at the core of these controversies: first, until recently theoretical models had been unable to link trade policy to faster equilibrium growth. And second, the empirical literature on the subject has been affected by serious data problems. In this paper I use a new comparative data set for 93 countries to analyze the robustness of the relationship between openness and TFP growth. I use nine alternative indexes of trade policy to investigate whether the evidence supports the view that, with other things given, TFP growth is faster in more open economies. The regressions reported here are robust to the use of openness indicator, estimation technique, time period and functional form, and suggest that more open countries have indeed experienced faster productivity growth. Although the use of instrumental variables goes a long way towards dealing with endogeneity, issues related to causality are still somewhat open, and will require time series analyses to be adequately addressed.

Author:
Publisher: DIANE Publishing
ISBN: 1457825414
Category :
Languages : en
Pages : 166

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Author: Cynthia Ruth Dulira
Publisher:
ISBN:
Category : Econometrics
Languages : en
Pages : 0

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Author: Suthikul Khaodhiar
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 184

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The relationship of openness, growth and total factor productivity is investigated empirically using panel regressions for 48 countries. This study tests a variety of openness measures, including the ratio of trade (exports plus imports), imports, exports and primary exports to GDP. We also study the effects of the interaction of openness and other variables on growth. Two approaches are used and lead to consistent empirical findings. First, we estimate the relationship between the growth rate and a number of potential variables. Second, we estimate total factor productivity (TFP) from production function estimates, then estimate the determinants of TFP such as inflation, terms of trade, money supply, human capital, and various measures of openness. In addition, this study explores the sources of growth and determinants of total factor productivity in rich, poor and middle-income countries. Although the main emphasis of this study is empirical, a theoretical discussion on the linkage between openness and growth is provided. Finally, we summarize results. The principal finding is that there is a positive association between openness, growth and total factor productivity, although exports of primary products have a negative effect on TFP, as some theory suggests. In addition, the sources of growth are different among country groups: openness seems to benefit growth and total factor productivity in low-and middle-income economies but not in high-income economies.

Author: Robert E. Baldwin
Publisher: University of Chicago Press
ISBN: 0226036553
Category : Business & Economics
Languages : en
Pages : 560

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People passionately disagree about the nature of the globalization process. The failure of both the 1999 and 2003 World Trade Organization's (WTO) ministerial conferences in Seattle and Cancun, respectively, have highlighted the tensions among official, international organizations like the WTO, the International Monetary Fund (IMF), the World Bank, nongovernmental and private sector organizations, and some developing country governments. These tensions are commonly attributed to longstanding disagreements over such issues as labor rights, environmental standards, and tariff-cutting rules. In addition, developing countries are increasingly resentful of the burdens of adjustment placed on them that they argue are not matched by commensurate commitments from developed countries. Challenges to Globalization evaluates the arguments of pro-globalists and anti-globalists regarding issues such as globalization's relationship to democracy, its impact on the environment and on labor markets including the brain drain, sweat shop labor, wage levels, and changes in production processes, and the associated expansion of trade and its effects on prices. Baldwin, Winters, and the contributors to this volume look at multinational firms, foreign investment, and mergers and acquisitions and present surprising findings that often run counter to the claim that multinational firms primarily seek countries with low wage labor. The book closes with papers on financial opening and on the relationship between international economic policies and national economic growth rates.

Author: Antonio Navas-Ruiz
Publisher:
ISBN:
Category : Development economics
Languages : de
Pages : 93

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Author: Apostolos Serletis
Publisher: World Scientific Publishing Company Incorporated
ISBN: 9789814390675
Category : Business & Economics
Languages : en
Pages : 142

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Book Description
The relationship between the price of oil and the level of economic activity is a fundamental issue in macroeconomics. There is an ongoing debate in the literature about whether positive oil price shocks cause recessions in the United States (and other oil-importing countries), and although there exists a vast empirical literature that investigates the effects of oil price shocks, there are relatively few studies that investigate the direct effects of uncertainty about oil prices on the real economy. The book uses recent advances in macroeconomics and financial economics to investigate the effects of oil price shocks and uncertainty about the price of oil on the level of economic activity.

Author: Arrigo Opocher
Publisher: Cambridge University Press
ISBN: 1107097797
Category : Business & Economics
Languages : en
Pages : 233

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This original book develops a systematic zero-net-profit comparative statics theory to shed new light on the microeconomics of industry equilibrium.

Author: Mr.Ari Aisen
Publisher: International Monetary Fund
ISBN: 1455211907
Category : Business & Economics
Languages : en
Pages : 30

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The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic panel data models on a sample covering up to 169 countries, and 5-year periods from 1960 to 2004, we find that higher degrees of political instability are associated with lower growth rates of GDP per capita. Regarding the channels of transmission, we find that political instability adversely affects growth by lowering the rates of productivity growth and, to a smaller degree, physical and human capital accumulation. Finally, economic freedom and ethnic homogeneity are beneficial to growth, while democracy may have a small negative effect.