The Nature of Trade and Growth Linkages
This paper shows new empirical regularities indicating that the structure of trade connections affects the trade-growth nexus. System generalized method of moments estimations indicate that key structural features associated with the composition of...
| Main Authors: | , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/900341502818068705/The-nature-of-trade-and-growth-linkages http://hdl.handle.net/10986/27975 |
| Summary: | This paper shows new empirical
regularities indicating that the structure of trade
connections affects the trade-growth nexus. System
generalized method of moments estimations indicate that key
structural features associated with the composition of
traded products and partners matter for growth. The results
show that increases in the degree of intra-industry trade,
greater insertion into the middle of global value chains,
and increases in the shares of differentiated goods, skilled
labor-intensive goods, and high-tech-intensive goods in
traded baskets are all associated with higher income growth.
An increase in the share of trade with countries at the core
of the global trade network is also associated with greater
growth effects. However, many of these effects are
non-linear and depend on the degree of trade openness and
labor force education. The results suggest that
technological diffusion and learning spillovers play some
role in the growth effects associated with the nature of
trade connections. |
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