The Long-Run Effects of Trade on Income and Income Growth

@inproceedings{Brunner2003TheLE,
  title={The Long-Run Effects of Trade on Income and Income Growth},
  author={Allan D. Brunner},
  year={2003}
}
This paper examines the dynamic relationship between trade and income. While most economists agree that increased trade leads to an increase in average income, economic theory is ambiguous about the possible effects on the long-run growth rate of the economy. Using a dynamic panel data model, the hypotheses of no long-run effects of trade on income and on income growth are tested explicitly. The possibility of endogeneity is addressed by constructing an instrument for trade by extending Frankel… Expand
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