Trade Liberalization and Growth: New Evidence

creativeworkseries.issn 1564-698X Wacziarg, Romain Horn Welch, Karen 2012-03-30T07:12:37Z 2012-03-30T07:12:37Z 2008-05-30
dc.description.abstract A new data set of on openness indicators and trade liberalization dates allows the 1995 Sachs and Warner study on the relationship between trade openness and economic growth to be extended to the 1990s. New evidence on the time paths of economic growth, physical capital investment, and openness around episodes of trade policy liberalization is also presented. Analysis based on the new data set suggests that over the 1950–98 period, countries that liberalized their trade regimes experienced average annual growth rates that were about 1.5 percentage points higher than before liberalization. Postliberalization investment rates rose 1.5–2.0 percentage points, confirming past findings that liberalization fosters growth in part through its effect on physical capital accumulation. Liberalization raised the average trade to GDP ratio by roughly 5 percentage points, suggesting that trade policy liberalization did indeed raise the actual level of openness of liberalizers. However, these average effects mask large differences across countries. en
dc.identifier.citation World Bank Economic Review
dc.identifier.issn 1564-698X
dc.publisher World Bank
dc.relation.ispartofseries World Bank Economic Review
dc.rights CC BY-NC-ND 3.0 IGO
dc.rights.holder World Bank
dc.subject capital accumulation
dc.subject developing countries
dc.subject economic liberalization
dc.subject growth rates
dc.subject international trade
dc.subject liberalization
dc.subject physical capital investment
dc.subject public equity
dc.subject share
dc.subject trade
dc.title Trade Liberalization and Growth: New Evidence en
dc.type Journal Article en
dc.type Article de journal fr
dc.type Artículo de revista es
dspace.entity.type Publication
okr.doctype Journal Article
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Poverty
okr.globalpractice Finance and Markets
okr.globalpractice Governance
okr.globalpractice Trade and Competitiveness
okr.globalpractice Trade and Competitiveness 2
okr.language.supported en
okr.pagenumber 187
okr.pagenumber 231
okr.pdfurl wber_22_2_187.pdf en
okr.peerreview Academic Peer Review Indonesia China Mexico Korea, Republic of Botswana
okr.topic International Economics and Trade
okr.topic Private Sector Development :: Emerging Markets
okr.topic Finance and Financial Sector Development :: Currencies and Exchange Rates
okr.topic International Economics and Trade :: Free Trade
okr.topic Economic Theory and Research
okr.topic Macroeconomics and Economic Growth :: Economic Conditions and Volatility
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.topic Poverty Reduction :: Pro-Poor Growth
okr.topic Law and Development :: Trade Law
okr.volume 22
relation.isJournalIssueOfPublication 7db3ebbc-cb91-498f-95a8-4467c8a619ae
relation.isJournalOfPublication c41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication 4c8baec9-4fd4-4228-8add-184b554e4a53
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