| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
|---|---|
| Series Title | European Economy: Economic Papers |
| Series Details | No.204, May 2004 |
| Publication Date | May 2004 |
| ISBN | 92-894-5969-7 |
| ISSN | 1016-8060 |
| EC | KC-AI-04-204-EN-C |
| Content Type | Journal | Series | Blog, Report |
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Existing literature repeatedly documented a strong correlation between trade and growth. It has also shown a causal effect of imports (though not necessarily exports) on growth in simultaneous equation models but to a lesser extent in Granger-causality tests. Export and import taxes have sometimes been found to negatively affect growth. Drawing policy conclusions from these general findings for a particular country is difficult not only because of the contradictory results but also because of potential second best world effects and the implied endogeneity of trade policy. Policy recommendations for a specific country require a careful analysis of market and institutional arrangements and can not be based on the existing cross-country literature. |
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| Source Link | Link to Main Source http://ec.europa.eu/economy_finance/publications/publication_summary714_en.htm |
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| Subject Categories | Trade |
| Countries / Regions | Europe |
