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Once Again, is Openness Good for Growth?

Abstract
Rodriguez and Rodrik (2000) argue that the relation between openness and growth is still an open question. One of the main problems in the assessment of the effect is the endogeneity of the relation. In order to address this issue, this paper applies the identification through heteroskedasticity methodology to estimate the effect of openness on growth while properly controlling for the effect of growth on openness. The results suggest that openness would have a positive effect on growth, although small. This result stands, despite the equally robust effect from growth to openness
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. ENDOGENEITY""; ""A. Reversed Regressions: OLS Bounds""; ""B. Identification Through Heteroskedasticity""; ""C. Adding Control Variables""; ""III. RESULTS""; ""A. Reversed Regression""; ""B. IH Estimation: Standard Setup""; ""C. IH Estimation: Accounting for Serial Correlation""; ""D. IH Estimation: Accounting for Serial Correlation and Cross-Sectional Variation""; ""IV. CONCLUSIONS""; ""APPENDIX""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (30 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781451900910

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