Trade Liberalization, Economic Crises, and Growth

Falvey, Rodney E.; Foster, Neil; Greenaway, David

doi:10.1016/j.worlddev.2012.03.020

Cited by 64 publications

(29 citation statements)

References 36 publications

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“…Yanikkaya () finds that trade openness promotes economic growth, although trade barriers also appear to have a positive and significant relation with growth. Falvey, Foster, and Greenaway () find that trade liberalization raises economic growth in both crisis and noncrisis periods.…”

Section: Empirical Methods and Strategymentioning

confidence: 99%

Foreign Direct Investment and Economic Growth in SSA: The Role of Institutions

Agbloyor

Gyeke-Dako

Kuipo

et al. 2016

Thunderbird Intl Bus Rev

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This article examines the relationship among foreign direct investment ( FDI ), institutions and economic growth in sub-Saharan Africa in different country environs. We employ a two-step generalized methods of moments estimator with Weidmeijer corrected standard errors and orthogonal deviations to examine the empirical relations. In the full sample, we do not fi nd evidence that FDI promotes growth. We also do not fi nd a signifi cant relationship between institutions and economic growth. Finally, we do not fi nd convincing evidence that institutions alter favorably the effect of FDI on economic growth. In the subsample that excludes countries with developed fi nancial markets, again we do not fi nd a signifi cant relation between FDI and economic growth. However, we fi nd evidence suggesting that institutions play a direct role in spurring economic growth. Further, the quality of institutions seems to alter favorably the relationship between FDI and economic growth. Finally, in the sample that excludes countries with abundant natural resources, we fi nd a direct and positive relationship between FDI and economic FEATURE ARTICLE 480 FEATURE ARTICLE growth. We also fi nd a direct relationship between institutions and economic growth. The growthenhancing effects of FDI , however, seem to reduce as the quality of institutions improves. The major implication from our study is that countries should take into consideration their own realities when they fashion policies to benefi t from FDI in terms of achieving better growth outcomes.

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Section: Empirical Methods and Strategymentioning

confidence: 99%

Foreign Direct Investment and Economic Growth in SSA: The Role of Institutions

Agbloyor

Gyeke-Dako

Kuipo

et al. 2016

Thunderbird Intl Bus Rev

View full text Add to dashboard Cite

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“…Falvey et al . () use a panel of 75 countries over the period 1960–2003 finding evidence that trade liberalization increases economic growth in the long run. They find evidence of significant crisis threshold; hence, liberalization at a time of external crisis can bring additional growth benefits.…”

Section: Introductionmentioning

confidence: 99%

Trade Openness, Economic Growth and the Global Financial Crisis of 2007–2009 in Latin America

Benita

2019

J of Intl Development

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This paper examines the relationship between bilateral trade openness and per capita gross domestic product for 15 Latin American countries during the financial crisis of 2008. It is employed an augmented gravity model of trade for the pre‐crisis, during‐crisis and post‐crisis periods (2004–2006, 2007–2009 and 2010–2012, respectively). Geographical characteristics and democracy rates of countries are used to instrument for average bilateral trade volumes. Different measures of trade openness are tested, and mixed results are identified. First, a slightly positive relationship between trade openness and growth is found when considering only Latin American countries. Second, after removing outliers and considering all importer countries, a negative relationship between the variables is found. © 2019 John Wiley & Sons, Ltd.

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“…The empirical literature on the relationship between openness to trade (OT) and economic growth has had somewhat mixed results (see Frankel and Romer, 1999;Greenaway et al, 2002;Falvey et al, 2012). Most authorities conclude that openness has generally improved economic growth in developing countries, however the precise channel through which it can help achieve balanced economic growth does not appear to be straightforward.…”

Section: Introductionmentioning

confidence: 99%

“…The literature on trade liberalisation has generally taken the view that it increases economic growth (e.g., Frankel and Romer, 1999;Greenaway et al, 2002;Wang et al, 2004;Falvey et al, 2012). By contrast, an influential strand of international economics increasingly concerns itself with socio-economic phenomena.…”

Section: Introductionmentioning

confidence: 99%