Openness can be good for growth: The role of policy complementarities

• 成果类型: Article
• 署名作者: Chang, Roberto; Kaltani, Linda; Loayza, Norman V.
• 署名单位: The World Bank; International Monetary Fund; National Bureau of Economic Research; Rutgers University System; Rutgers University New Brunswick
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2008.06.011
• 发表日期: 2009
• 页码: 33-49
• 关键词: Openness; GROWTH; economic reform; Policy complementarity

摘要

This paper Studies how the effect of trade openness on economic growth may depend on complementary reforms that help a country take advantage of international competition. This issue is illustrated with a simple Harris-Todaro model where welfare gains after trade openness depend on the degree of labor market flexibility. The paper then presents cross-country, panel-data evidence on how the growth effect of openness may depend on a variety of structural characteristics. For this purpose, the empirical section uses a non-linear growth regression specification that interacts a proxy of trade openness with proxies of educational investment, financial depth, inflation stabilization, public infrastructure, governance, labor market flexibility, ease of firm entry, and ease of firm exit. The paper concludes that the growth effects of openness may be significantly improved if certain complementary reforms are undertaken. (C) 2008 Elsevier B.V. All rights reserved.