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The Impact of Trade Liberalisation on Economic Growth: Evidence from a Quantile Regression Analysis

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  • Neil Foster

Abstract

Individual country experience with trade liberalisation has been mixed. This paper examines the relationship between liberalisation and growth for a sample of 75 liberalising countries. To consider the importance of heterogeneity in the growth response to liberalisation this paper employs quantile regression methods which allow the coefficient on liberalisation to vary across the conditional growth distribution. The results suggest that countries experiencing the lowest rates of growth benefit most from liberalisation. The results also suggest that while such countries benefit most in the long‐run they are the most likely to suffer from short‐run negative effects of liberalisation.

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  • Neil Foster, 2008. "The Impact of Trade Liberalisation on Economic Growth: Evidence from a Quantile Regression Analysis," Kyklos, Wiley Blackwell, vol. 61(4), pages 543-567, November.
    • Handle: RePEc:bla:kyklos:v:61:y:2008:i:4:p:543-567
    DOI: 10.1111/j.1467-6435.2008.00417.x
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    13. Chen Kong San & Lee Chin, 2023. "Impact of Public Debt on Economic Growth: A Quantile Regression Approach," South Asian Journal of Macroeconomics and Public Finance, , vol. 12(2), pages 250-278, December.
    14. Philip Kostov & Julie Le Gallo, 2015. "Convergence: A Story of Quantiles and Spillovers," Kyklos, Wiley Blackwell, vol. 68(4), pages 552-576, November.
    15. Le, Minh Son, 2014. "Trade openness and household welfare within a country: A microeconomic analysis of Vietnamese households," Journal of Asian Economics, Elsevier, vol. 33(C), pages 56-70.
    16. Cartone, Alfredo & Postiglione, Paolo & Hewings, Geoffrey J.D., 2021. "Does economic convergence hold? A spatial quantile analysis on European regions," Economic Modelling, Elsevier, vol. 95(C), pages 408-417.
    17. Deng, Wen-Shuenn & Lin, Yi-Chen & Gong, Jinguo, 2012. "A smooth coefficient quantile regression approach to the social capital–economic growth nexus," Economic Modelling, Elsevier, vol. 29(2), pages 185-197.
    18. Ulaşan, Bülent, 2012. "Openness to international trade and economic growth: A cross-country empirical investigation," Economics Discussion Papers 2012-25, Kiel Institute for the World Economy (IfW Kiel).
    19. Sumbal Fatima & Bateer Chen & Muhammad Ramzan & Qamar Abbas, 2020. "The Nexus Between Trade Openness and GDP Growth: Analyzing the Role of Human Capital Accumulation," SAGE Open, , vol. 10(4), pages 21582440209, November.
    20. Philip Kostov & Julie Le Gallo, 2018. "What role for human capital in the growth process: new evidence from endogenous latent factor panel quantile regressions," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(5), pages 501-527, November.
    21. Stojkov, Aleksandar & Zalduendo, Juan, 2011. "Europe as a convergence engine -- heterogeneity and investment opportunities in emerging Europe," Policy Research Working Paper Series 5837, The World Bank.
    22. Dayal Talukder & Love Chile, 2018. "Technological Innovation And Total Factor Productivity Growth Of Rice Production In Bangladesh In The Post-Liberalisation Era," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 50-70, December.
    23. Amèvi Rocard Kouwoaye, 2021. "GATT/WTO membership–poverty nexus: An unconditional quantile regression approach," The World Economy, Wiley Blackwell, vol. 44(11), pages 3389-3421, November.
    24. Mariko Nakagawa & Shonosuke Sugasawa, 2022. "Linguistic distance and economic development: A cross‐country analysis," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 793-834, May.
    25. Mohamed Chakroun & Naima Chrid & Sami Saafi, 2021. "Does export upgrading really matter to economic growth? Evidence from panel data for high‐, middle‐ and low‐income countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5584-5609, October.

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