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A New Measure of Trade Openness
Jay Squalli,Kenneth Wilson +1 more
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TLDR
The authors proposed a composite trade share measure that more completely reflects reality by combining two important dimensions of trade openness: trade share and the relative importance of a country's trade level to total world trade.Abstract:
Trade openness, popularly measured as (X + M)/GDP in the hundreds of studies published to date, consistently considers the world's biggest trading countries such as the USA, the UK, Japan and Germany to be closed economies, irrespective of the data set used. This study suggests a composite trade share measure that more completely reflects reality by combining two important dimensions of trade openness: trade share and the relative importance of a country's trade level to total world trade. Robustness tests support the new proposed measure in lieu of the conventional measure of openness and suggest that the latter may not only be incomplete but may also overstate the impact of trade on such things as income and the environment.read more
Citations
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Does Trade Openness Affect Long Run Growth? Cointegration, Causality and Forecast Error Variance Decomposition Tests for Pakistan
TL;DR: In this article, the authors investigated the impact of trade openness on economic growth in the long run using the ARDL bounds testing approach to test for a long run relationship and the augmented production function by incorporating financial development as an additional determinant of economic growth.
Journal ArticleDOI
Trade openness and environmental quality: International evidence
TL;DR: In this article, the authors examined the relationship between trade openness and the environment in a cross-country panel, using the emission of particulate matter (PM10) as the basic indicator of environmental quality.
Journal ArticleDOI
Institutional quality, governance, and financial development
TL;DR: In this article, the authors examined the effect of institutional quality on financial development in developed and developing countries and demonstrated that a high-quality institutional environment is important in explaining financial development, specifically for the banking sector.
Journal ArticleDOI
The relationship between trade openness and economic growth: Some new insights on the openness measurement issue
TL;DR: In this article, the authors enrich the way of measuring trade openness taking into account two different dimensions of countries' integration in world trade: export quality and export variety, and find a nonlinear pattern between the export ratio and the quality of the export basket, suggesting that openness to trade may impact growth negatively for countries which are specialized in low quality products.
References
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Journal ArticleDOI
A Contribution to the Empirics of Economic Growth
TL;DR: The authors examined whether the Solow growth model is consistent with the international variation in the standard of living, and they showed that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent description of the cross-country data.
Journal ArticleDOI
Does Trade Cause Growth
TL;DR: This paper found that trade has a quantitatively large and robust, though only moderately statistically significant, positive effect on income and that countries' geographic characteristics have important effects on trade, and are plausibly uncorrelated with other determinants of income.
Journal ArticleDOI
Economic Reform and the Process of Global Integration
TL;DR: The World Trade Organization (WTO) was established by agreement of more than 120 economies, with almost all the rest eager to join as rapidly as possible as mentioned in this paper, and the agreement included a codification of basic principles governing trade in goods and services.
Journal ArticleDOI
The causes of corruption: a cross-national study
TL;DR: The authors analyzed several indexes of perceived corruption compiled from business risk surveys for the 1980s and 1990s and found that countries with Protestant traditions, histories of British rule, more developed economies, and (probably) higher imports were less corrupt.
Report SeriesDOI
Handbook on Constructing Composite Indicators: Methodology and User Guide
Michela Nardo,Michaela Saisana,Andrea Saltelli,Stefano Tarantola,Anders Hoffman,Enrico Giovannini +5 more
TL;DR: In this paper, the authors present a handbook for constructing and using composite indicators for policy makers, academics, the media and other interested parties, which is concerned with those which compare and rank country performance in areas such as industrial competitiveness, sustainable development, globalisation and innovation.
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