Cover IMF Working Papers
International Trade, Distortions and Long-Run Economic Growth
Author:
Jong-Wha Leenull

Search for other papers by Jong-Wha Lee in
Current site
Google ScholarClose
Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 090
Language:
English
Publication Date:
01 Nov 1992
DOI:
https://doi.org/10.5089/9781451851335.001
ISBN:
9781451851335
ISSN:
1018-5941
Pages:
41
Keywords:
WP; free trade; open economy; trade distortion; tariff rate; saving rate; import share; production function; Tariffs; Trade liberalization; Trade policy; Trade barriers; Personal income; Sub-Saharan Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (2 MB) Download Epub
The links between trade and growth are examined in a neoclassical model of an open economy in which domestic production requires both domestic and imported inputs. The model shows that trade distortions induced by such government policies as tariffs and exchange controls generate cross-country divergences in growth rates and in per capita income over a long transitional period. The empirical results confirm that tariff rates and black market premia, interacting with an estimate of the share of free trade imports, have significant negative effects on the growth rate of per capita income across countries in the orders of magnitude predicted by the model.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 1992: Issue 090