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Trade Openness and Growth :, Pursuing Empirical Glasnost, Andreas Billmeier, Tommaso Nannicini

Studies of the impact of trade openness on growth are based either on cross-country analysis-which lacks transparency-or case studies-which lack statistical rigor. We apply transparent econometric methods drawn from the treatment evaluation literature to make the comparison between treated (i.e., open) and control (i.e., closed) countries explicit while remaining within a unified statistical framework. First, matching estimators highlight the rather far-fetched country comparisons underlying common cross-country results. When appropriately restricting the sample, we confirm a positive and significant effect of openness on growth. Second, we apply synthetic control methods-which account for endogeneity due to unobservable heterogeneity-to countries that liberalized their trade regime and we show that trade liberalization has often had a positive effect on growth
Table Of Contents
Contents; I. Introduction; II. Literature Review; A. Empirical Studies on Trade Openness and Growth; B. Empirical Studies Applying Matching Estimators to Macro Data; III. Data and Variables of Interest; IV. Cross-Country Analysis and Matching Estimators; A. Methodology; B. The Unbearable Lightness of Cross-Country Estimates; C. Refined Evidence in Selected Regions; V. Comparative Studies and Synthetic Control Methods; A. Methodology; B. Openness and Growth in MCD Countries; VI. Conclusions and Extensions; Tables; 1. Openness and Growth, Cross-Country Evidence (I), 1950-98
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (52 p.)
Specific Material Designation
Form Of Item

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