No Miracles Here: Trade Policy, Fiscal Policy and Economic Growth

@inproceedings{Kneller2003NoMH,
  title={No Miracles Here: Trade Policy, Fiscal Policy and Economic Growth},
  author={Richard Kneller},
  year={2003}
}
In this paper we consider whether the rate of growth following trade liberalisation differs significantly from growth in other developing countries. We find that it does not. Given this result we explore whether these growth effects are offset by changes in other policy variables, namely changes in fiscal policy. Governments increase welfare spending as a response to greater exposure to international trade. We find evidence that countries that liberalise their trade regimes increase their… CONTINUE READING