Department of Economics
Trade intensity, net export, and economic growth
Many studies suggest the positive causal effects of trade on productivity and growth. However, controversies are still prevalent among vast empirical studies on the issue. In this paper, I propose a standard empirical framework for investigating GDP growth and apply the framework to estimate the growth effects and transmission channels of per capita trade. Based on prior information, theoretical reasoning, and various empirical evidences, I conclude that international trade has positive independent effects on economic performance. A 1% increase in per capita trade raises the equilibrium GDP growth by 0.29%. © 2010 Blackwell Publishing Ltd.
Source Publication Title
Review of Development Economics
Mo, Pak Hung. "Trade intensity, net export, and economic growth." Review of Development Economics 14.3 (2010): 563-576.