Does Trade Cause Growth

@article{Frankel1999DoesTC,
  title={Does Trade Cause Growth},
  author={Jeffrey A. Frankel and David H. Romer},
  journal={The American Economic Review},
  year={1999},
  volume={89},
  pages={379-399}
}
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… 

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