Trade Structure, FTAs, and Economic Growth

摘要

What is the relationship between trade and economic growth? Does trade positively affect economic growth? Due to the ambiguity of the relationship between trade and growth, the empirical relationship remains open (Rodriguez and Rodrik 2001; Baldwin 2003). This paper introduces "trade structure" variables, borrowed from the recent paper of Lederman and Maloney (2003), and applying them to the relationship. A dynamic panel estimation for the data of 66 countries during 1991-2004 is used to verify the validity and robustness of the relationship. Trade structure variables show strong evidence of positive effects on growth. Free trade agreements/areas (FTAs) also enhance economic growth. East Asia shows a different relationship between trade and growth compared to the world, and a weaker role of FTAs in its growth.