TRADE BARRIERS, OPENNESS, AND ECONOMIC GROWTH

Abstract

Using a long dataset on openness and productivity this paper tests the influence of openness on TFP growth and per capita growth since 1870 for 16 industrialized countries. It is shown, in simple regressions, that growth is by and large independent of openness. However, once the interaction between openness and foreign knowledge is allowed for, productivity is positively affected by openness.Openness, TFP growth, trade barriers, imports of technology, panel estimates.