Does international trade cause economic growth? A survey

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Title Does international trade cause economic growth? A survey
Author Singh, Tarlok
Journal Name The World Economy
Year Published 2010
Place of publication United Kingdom
Publisher Wiley-Blackwell Publishing Ltd.
Abstract This study surveys the literature on the relationship between international trade and economic growth, and succinctly reviews the role of GATT/WTO in fostering free trade. Most studies support the gains of trade and recognise the substantive contributions of GATT/WTO in fostering free trade; the evidence is, however, not ubiquitously unambiguous. The macroeconomic evidence provides a dominant support for the positive and significant effects of trade on output and growth, while the microeconomic evidence lends larger support to the exogenous effects of productivity on trade, as compared to the effects of trade on productivity. The GATT/WTO remains surrounded by barriers to trade and avowed preferences for preferential trade agreements. The strength of the argument for the gains of trade needs to be evaluated in juxtaposition with several methodological and measurement issues that surround the trade-growth empirics. Most studies focus on partial equilibrium analysis of trade policy and ignore the general equilibrium aspects of macroeconomic policy. It is difficult to disentangle the effects of trade policies from those of other macroeconomic policies and unequivocally interpret the observed correlations between trade policies and economic growth. Trade is one of the several catalysts of productivity and growth and hence its contribution is contingent on its weight in economic activity.
Peer Reviewed Yes
Published Yes
Alternative URI
Volume 33
Issue Number 11
Page from 1517
Page to 1564
ISSN 0378-5920
Date Accessioned 2011-01-31
Language en_AU
Research Centre Griffith Asia Institute
Faculty Griffith Business School
Subject Applied Economics
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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