1. External Openness and Economic Growth in Developing Countries.
- Author
-
Cieślik, Andrzej and Tarsalewska, Monika
- Subjects
ECONOMIC development ,INTERNATIONAL trade ,FOREIGN investments ,GROWTH rate ,PREDICTION models ,PANEL analysis ,DEVELOPING countries - Abstract
This paper investigates empirically the relationship between two channels of external openness: international trade, foreign direct investment (FDI), and the rate of economic growth implied by the leader-follower model. The predictions of the theory are tested for the group of 97 developing countries in the period of 1974-2006 using static and dynamic panel data estimation methods. The estimation results show that both international trade and FDI positively contribute to growth. [ABSTRACT FROM AUTHOR]
- Published
- 2011
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