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摘要
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Examining the correlation between trade and income cannot identify the direction of causation between the two. Countries' geographic characteristics, however, have important effects on trade, and are plausibly uncorrelated with other determinants of income. This paper therefore constructs measures of the geographic component of countries' trade, and uses those measures to obtain instrumental variables estimates of the effect of trade on income, The results provide no evidence that ordinary least-squares estimates overstate the effects of trade. Further, they suggest that trade has a quantitatively large and robust, though only moderately statistically significant positive effect on income. (JEL F43, O40).
Keyword:
ECONOMIC-GROWTH
DEVELOPING-COUNTRIES
DISTORTIONS
OPENNESS
EXPORTS
期刊
IF:
11.6
论文数:
5.0K
被引数:
7.5W
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SOME FURTHER RESULTS ON THE EXACT SMALL SAMPLE PROPERTIES OF THE INSTRUMENTAL VARIABLE ESTIMATOR.png)
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