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Trade and Economic Growth : Evidence on the Role of Complementarities for CAFTA-DR Countries

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dc.contributor.authorCalderón, César
dc.contributor.authorPoggioa, Virginia
dc.date.accessioned2012-03-19T18:42:11Z
dc.date.available2012-03-19T18:42:11Z
dc.date.issued2010-09-01
dc.description.abstractThis paper examines the effects of trade on growth among Central America-Dominican Republic Free Trade Agreement countries. To accomplish this task, the authors collected a panel data set of 136 countries over 1960-2010, and estimated cross-country growth regressions using an econometric methodology that accounts for unobserved effects and the likely endogeneity of the growth determinants. Following recent empirical efforts, they tested whether the impact of trade openness on growth may be more effective after surpassing a "minimum threshold" in specific areas closely related to economic development. The analysis finds not only that there is a robust causal link from trade to growth, but also that the growth benefits from trade are larger in countries with higher levels of education and innovation, deeper financial markets, a stronger institutional framework, more developed infrastructure networks, a high level of integration with world capital markets, and less stringent economic regulations. On average, rising trade has benefited growth in Central America-Dominican Republic Free Trade Agreement countries. However, the lack of progress in structural reforms has not allowed these countries to maximize the potential benefits from trade.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100929130215
dc.identifier.doi10.1596/1813-9450-5426
dc.identifier.urihttps://hdl.handle.net/10986/3920
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5426
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERSE EFFECT
dc.subjectADVERSE EFFECTS
dc.subjectAGGREGATE LEVEL
dc.subjectAGGREGATE VOLATILITY
dc.subjectAGRICULTURAL PRODUCTIVITY
dc.subjectANNUAL GROWTH
dc.subjectANNUAL GROWTH RATE
dc.subjectASSETS
dc.subjectBENCHMARK
dc.subjectBOND
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectCAPITAL GOODS
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL MARKETS
dc.subjectCENTRAL BANK
dc.subjectCHANGES IN TRADE
dc.subjectCOEFFICIENT ESTIMATE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCONDITIONAL CONVERGENCE
dc.subjectCONSUMER GOODS
dc.subjectCOUNTRY CHARACTERISTICS
dc.subjectCOUNTRY SPECIFIC
dc.subjectCROSS COUNTRY
dc.subjectCURRENCY
dc.subjectDEBT
dc.subjectDEBT INSTRUMENTS
dc.subjectDEBT TO EQUITY RATIOS
dc.subjectDEMAND ELASTICITIES
dc.subjectDEMOCRATIC ACCOUNTABILITY
dc.subjectDEPENDENT VARIABLE
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT INDICATORS
dc.subjectDEVELOPMENT REPORT
dc.subjectDIMINISHING RETURNS
dc.subjectDOMESTIC CREDIT
dc.subjectDOMESTIC PRODUCERS
dc.subjectDYNAMIC PANEL
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMETRICS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC IMPLICATIONS
dc.subjectECONOMIC INTEGRATION
dc.subjectECONOMIC LITERATURE
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC REFORM
dc.subjectECONOMIC STATISTICS
dc.subjectECONOMIC STUDIES
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS
dc.subjectECONOMIES OF SCALE
dc.subjectEDUCATED PEOPLE
dc.subjectEDUCATIONAL ATTAINMENT
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL GROWTH LITERATURE
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL STUDIES
dc.subjectEMPLOYMENT EQUATIONS
dc.subjectENFORCEMENT OF CONTRACTS
dc.subjectERROR TERM
dc.subjectESTIMATED COEFFICIENTS
dc.subjectESTIMATION METHOD
dc.subjectESTIMATION TECHNIQUES
dc.subjectEXOGENOUS VARIABLES
dc.subjectEXPLANATORY VARIABLES
dc.subjectEXPORT MARKET
dc.subjectEXPORTS
dc.subjectEXTERNAL CONDITIONS
dc.subjectFACTOR PRICE
dc.subjectFACTOR PRICE EQUALIZATION
dc.subjectFINANCIAL DEPTH
dc.subjectFINANCIAL DERIVATIVES
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKET DEVELOPMENT
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFISCAL POLICIES
dc.subjectFORECASTS
dc.subjectFOREIGN ASSETS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN TRADE
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENT
dc.subjectFREE TRADE AGREEMENTS
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBAL INTEGRATION
dc.subjectGLOBALIZATION
dc.subjectGRAVITY MODEL
dc.subjectGROWTH DETERMINANTS
dc.subjectGROWTH EFFECT
dc.subjectGROWTH PERFORMANCE
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectGROWTH REGRESSIONS
dc.subjectHUMAN CAPITAL
dc.subjectIMPACT OF TRADE
dc.subjectIMPERFECT COMPETITION
dc.subjectIMPORT TARIFFS
dc.subjectINCOME
dc.subjectINCOME CONVERGENCE
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME INEQUALITY
dc.subjectINCOME LEVELS
dc.subjectINCREASING RETURNS
dc.subjectINCREASING RETURNS TO SCALE
dc.subjectINEQUALITY DETERMINANTS
dc.subjectINFLATION RATE
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINFRASTRUCTURE PROVISION
dc.subjectINTERNATIONAL FINANCIAL INTEGRATION
dc.subjectINTERNATIONAL MARKETS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT RATE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLAGGED DEPENDENT
dc.subjectLAGGED LEVELS
dc.subjectLAGGED VALUES
dc.subjectLANDLOCKED COUNTRIES
dc.subjectLDCS
dc.subjectLIFE EXPECTANCY
dc.subjectLOCAL CURRENCY
dc.subjectLONG RUN
dc.subjectMACROECONOMIC FLUCTUATIONS
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC VOLATILITY
dc.subjectMACROECONOMICS
dc.subjectMARKET DEVELOPMENT
dc.subjectMARKET SIZE
dc.subjectMEASURE OF TRADE
dc.subjectMOBILE PHONES
dc.subjectMONETARY ECONOMICS
dc.subjectMULTINATIONAL FIRMS
dc.subject0 HYPOTHESIS
dc.subjectOIL EXPORTER
dc.subjectOIL EXPORTERS
dc.subjectOUTPUT
dc.subjectOUTPUT PER CAPITA
dc.subjectPER CAPITA GROWTH
dc.subjectPOLICY CHANGES
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL INSTABILITY
dc.subjectPOLITICAL RISK
dc.subjectPORTFOLIO
dc.subjectPOSITIVE EFFECTS
dc.subjectPRICE STABILITY
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROMOTING GROWTH
dc.subjectPROTECTIONIST POLICIES
dc.subjectRANDOM WALK
dc.subjectREAL GDP
dc.subjectREFORM POLICIES
dc.subjectREGIONAL INTEGRATION
dc.subjectREGIONAL TRADE
dc.subjectREGIONAL TRADE AGREEMENTS
dc.subjectREGRESSION ANALYSIS
dc.subjectREGULATORY FRAMEWORK
dc.subjectRESOURCE ALLOCATION
dc.subjectSECONDARY ENROLLMENT
dc.subjectSECONDARY SCHOOLING
dc.subjectSERIAL CORRELATION
dc.subjectSMALL COUNTRIES
dc.subjectSPECIALIZATION
dc.subjectSTANDARD DEVIATION
dc.subjectSTATISTICAL ANALYSIS
dc.subjectSTRUCTURAL POLICIES
dc.subjectTARIFF REDUCTIONS
dc.subjectTECHNOLOGICAL INNOVATION
dc.subjectTELECOMMUNICATIONS
dc.subjectTELEPHONE PENETRATION
dc.subjectTRADE AGREEMENT
dc.subjectTRADE BARRIERS
dc.subjectTRADE FLOWS
dc.subjectTRADE INTEGRATION
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE MORE
dc.subjectTRADE OPENNESS
dc.subjectTRADE PATTERNS
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE REFORM
dc.subjectTRADE REFORMS
dc.subjectTRADE REGIMES
dc.subjectTRADE VOLUMES
dc.subjectTRADING COSTS
dc.subjectTRANSITIONAL CONVERGENCE
dc.subjectVOLUME OF TRADE
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.subjectWORLD ECONOMY
dc.subjectWORLD TRADE
dc.titleTrade and Economic Growth : Evidence on the Role of Complementarities for CAFTA-DR Countriesen
dspace.entity.typePublication
okr.crossref.titleTrade and economic growth : evidence on the role of complementarities for CAFTA-DR countries
okr.date.disclosure2010-09-01
okr.date.doiregistration2025-04-10T11:40:48.463497Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100929130215
okr.globalpracticePoverty
okr.guid359771468149692036
okr.identifier.doi10.1596/1813-9450-5426
okr.identifier.externaldocumentum000158349_20100929130215
okr.identifier.internaldocumentum12816473
okr.identifier.reportWPS5426
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/09/29/000158349_20100929130215/Rendered/PDF/WPS5426.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicPoverty Reduction::Achieving Shared Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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