Regional Trade Agreements Versus Broad Liberalization: Which Path Leads to Faster Growth? Time-Series Evidence
IMF Working Papers, March 1, 1998
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- Regional Trade Agreements Versus Broad Liberalization: Which Path Leads to Faster Growth? Time-Series Evidence
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Bibliographic details
- Authors: Athanasios Vamvakidis
- Published: March 1, 1998
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451845945.001
Summary and principal findings
- Research question: Should a closed economy open its trade to all countries or limit itself to participation in regional trade agreements (RTAs)?
- Data coverage: time-series evidence for a data set for 1950-92.
- Main empirical findings:
- Economies grew faster after broad liberalization, both in the short and long run.
- Economies grew slower after participation in an RTA.
- Economies had higher investment shares after broad liberalization.
- Economies had lower investment shares after joining an RTA.
- Policy implication stated: The policy implications support broad liberalization.
Methods and subject focus
- Methodological approach: time-series estimation and comparisons of growth performance for countries that liberalized broadly versus those that joined an RTA.
- Subjects and keywords listed:
- Econometric analysis
- International trade
- Logit models
- Population and demographics
- Population growth
- Trade barriers
- Trade liberalization
- Trade policy
- Economic Growth of Open Economies
- Global
- investment share
- liberalization case
- Logit models
- open economy
- Population growth
- RTA dummy
- RTAs lead
- Trade barriers
- Trade liberalization
- Trade policy
- trade share
- WP
- Years before