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Cumulative Trade and Economic Growth in The East Asian Countries

Author

Listed:
  • M. Ishaq Nadiri

    (New York University)

  • Wanpyo Son

    (Hanshin University)

Abstract

There have been many empirical researches to find out the role of trade on economic growth. However, no attempt has been made to unravel the role of cumulative trade on economic growth. It could be presumed that the beneficial effects of trade will accumulate to affect the operation of economies to the future. We used cumulative trade augmented time index in our cost function framework to test whether cumulative trade contributed to the economic growth of the East Asian countries. We found that cumulative trade enhanced technical progress and played an important role in the economic growth of the East Asian countries. Cumulative trade also contributed to the East Asian countries' catching up the superior technologies of developed countries.

Suggested Citation

  • M. Ishaq Nadiri & Wanpyo Son, 2004. "Cumulative Trade and Economic Growth in The East Asian Countries," Korean Economic Review, Korean Economic Association, vol. 20, pages 175-192.
    • Handle: RePEc:kea:keappr:ker-20040630-20-1-09
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    More about this item

    Keywords

    Cumulative trade; Technological progress; Economic Growth; Catch-up; East Asian countries.;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F10 - International Economics - - Trade - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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