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"Does Trade Cause Growth? "- A Comment 1

By V. Heinrich Amavilah and Ph. D


The proposition that trade causes economic growth is a rich in international economic theory. Even so, how best to estimate and test for the effects of trade on economic growth remains a challenge to-date, mainly because of the joint determination of the empirical measures of both trade and economic growth. Professors Jeffrey Frankel and David Romer have offered and employed an insightful method of constructing an IV for trade that is less troubling than previous attempts. Yet the new method too has some small problems. This comment points out those problems and suggestions possible improvements

Year: 1999
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