TRADE-GROWTH NEXUS IN DEVELOPING AND DEVELOPED COUNTRIES: AN APPLICATION OF EXTREME BOUNDS ANALYSIS
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 7
Abstract
In this study, we investigated the relationship between foreign trade and economic growth in the developing and developed countries by using extreme bounds analysis approach. For this we used unbalanced panel data of 103 variables of 94 countries (74 developing countries and 20 developed countries) during 1990-2010. The estimation results of more than 1.6 million regressions show that more foreign trade indices are robust determinants of economic growth and have robustly positive effect on the economic growth of each country regardless of level of development. In the other words, results of this study support views of free trade advocates.
Authors and Affiliations
Mansour Zarra-Nezhad| Professor of Economics, Shahid Chamran University, Ahvaz, Iran, Fatimah Hosseinpour| Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University, Ahvaz, Iran, Seyed Aziz Arman| Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University, Ahvaz, Iran
Keywords
Related Articles
- EP ID EP2054
- DOI -
- Views 442
- Downloads 20
KOREA’S INPAYMENTS AND OUTPAYMENTS WITH THE REST OF THE WORLD: IS THERE ROOM FOR CURRENCY MANIPULATION?
In estimating the well-known Marshall-Lerner condition, researchers have used trade volume data between one country and rest of the world. To reduce aggregation bias in these studies, it is proposed to use trade data at...
CONTRIBUTION OF ADVANCED TECHNOLOGY AND FOREIGN CAPITAL TO GROWTH OF DIFFERENT STAGE OF DEVELOPMENT COUNTRIES
This study determines influence of advanced technology and foreign capital on economic growth apart from contribution of the other major domestic inputs. The countries were classified into four groups; i.e., lower and lo...
THE EFFECT OF CORRUPTION ON FIRM GROWTH: EVIDENCE FROM FIRMS IN TURKEY
To our knowledge, there is no micro-level study paying attention to the influence of corruption on firm growth. We aim to fill this gap in the literature. This paper therefore contributes to the limited literature on the...
THE IMPACT OF BIRD FLU ON THE ECONOMY: CGE MODEL APPROACH (COMPUTABLE GENERAL EQUILIBRIUM MODEL)
The negative impact of the outbreak of bird flu on economic sectors in the partial and macro research will be analyzed using CGE models (Computable General Equilibrium). The result of the simulation studies indicate that...
ARE TUNISIAN AND EGYPTIAN SHARE IPO MARKETS HOT OR COLD?
This paper seeks to detect hot and cold IPO cycles in the Tunisian and Egyptian share market using a Markov regime switching model. Using a set of IPO activity measures (number of IPOs, level of underpricing, market cond...