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Notes on trade and growth

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  • Frederico Gonzaga Jayme Jr

Abstract

The theoretical and empirical connections between economic growth and trade have been discussed in economics for a long time This link, however, has been proved empirically to be weak, as there is little evidence about the role of trade in economic growth and development. Taking into consideration this fact, the aim of this paper is to study the relationship between trade and growth. The central question to be addressed is the causal relation running from trade to growth, or, more specifically, the theoretical relationship between trade and growth. Two aspects will be taken into consideration, namely, the relationship between trade and growth and Balance of Payments problems and their relation with macroeconomic policy. The theoretical literature used in this paper will analyze the channels between trade and growth in both directions. The purpose is to assess the causality running from trade to growth.

Suggested Citation

  • Frederico Gonzaga Jayme Jr, 2001. "Notes on trade and growth," Textos para Discussão Cedeplar-UFMG td166, Cedeplar, Universidade Federal de Minas Gerais.
    • Handle: RePEc:cdp:texdis:td166
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    File URL: https://www.cedeplar.ufmg.br/pesquisas/td/TD%20166.pdf
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    References listed on IDEAS

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    Cited by:

    1. Alexander Maune, 2019. "Financial Inclusion and the Trade-Growth Nexus: Evidence from the Emerging Zimbabwean Economy," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 43-55.

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    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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