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Once Again, is Openness Good for Growth?
Author:
International Monetary Fund
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Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 135
Language:
English
Publication Date:
01 Jul 2004
DOI:
https://doi.org/10.5089/9781451855739.001
ISBN:
9781451855739
ISSN:
1018-5941
Pages:
29
Keywords:
WP; growth rate; supply schedule
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.
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Rodriguez and Rodrik (2000) argue that the relation between openness and growth is still an open question. One of the main problems in the assessment of the effect is the endogeneity of the relation. In order to address this issue, this paper applies the identification through heteroskedasticity methodology to estimate the effect of openness on growth while properly controlling for the effect of growth on openness. The results suggest that openness would have a positive effect on growth, although small. This result stands, despite the equally robust effect from growth to openness.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund