Trade and Economic Growth : Evidence on the Role of Complementarities for CAFTA-DR Countries

Calderón, César; Poggioa, Virginia

dc.creator	Calderón, César
dc.creator	Poggioa, Virginia
dc.date	2012-03-19T18:42:11Z
dc.date	2012-03-19T18:42:11Z
dc.date	2010-09-01
dc.date.accessioned	2023-02-17T21:05:59Z
dc.date.available	2023-02-17T21:05:59Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100929130215
dc.identifier	http://hdl.handle.net/10986/3920
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244890
dc.description	This paper examines the effects of trade on growth among Central America-Dominican Republic Free Trade Agreement countries. To accomplish this task, the authors collected a panel data set of 136 countries over 1960-2010, and estimated cross-country growth regressions using an econometric methodology that accounts for unobserved effects and the likely endogeneity of the growth determinants. Following recent empirical efforts, they tested whether the impact of trade openness on growth may be more effective after surpassing a "minimum threshold" in specific areas closely related to economic development. The analysis finds not only that there is a robust causal link from trade to growth, but also that the growth benefits from trade are larger in countries with higher levels of education and innovation, deeper financial markets, a stronger institutional framework, more developed infrastructure networks, a high level of integration with world capital markets, and less stringent economic regulations. On average, rising trade has benefited growth in Central America-Dominican Republic Free Trade Agreement countries. However, the lack of progress in structural reforms has not allowed these countries to maximize the potential benefits from trade.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5426
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ADVERSE EFFECT
dc.subject	ADVERSE EFFECTS
dc.subject	AGGREGATE LEVEL
dc.subject	AGGREGATE VOLATILITY
dc.subject	AGRICULTURAL PRODUCTIVITY
dc.subject	ANNUAL GROWTH
dc.subject	ANNUAL GROWTH RATE
dc.subject	ASSETS
dc.subject	BENCHMARK
dc.subject	BOND
dc.subject	BUSINESS OPPORTUNITIES
dc.subject	CAPITAL GOODS
dc.subject	CAPITAL INVESTMENT
dc.subject	CAPITAL MARKETS
dc.subject	CENTRAL BANK
dc.subject	CHANGES IN TRADE
dc.subject	COEFFICIENT ESTIMATE
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	COMPARATIVE ADVANTAGES
dc.subject	CONDITIONAL CONVERGENCE
dc.subject	CONSUMER GOODS
dc.subject	COUNTRY CHARACTERISTICS
dc.subject	COUNTRY SPECIFIC
dc.subject	CROSS COUNTRY
dc.subject	CURRENCY
dc.subject	DEBT
dc.subject	DEBT INSTRUMENTS
dc.subject	DEBT TO EQUITY RATIOS
dc.subject	DEMAND ELASTICITIES
dc.subject	DEMOCRATIC ACCOUNTABILITY
dc.subject	DEPENDENT VARIABLE
dc.subject	DEVELOPED COUNTRIES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT INDICATORS
dc.subject	DEVELOPMENT REPORT
dc.subject	DIMINISHING RETURNS
dc.subject	DOMESTIC CREDIT
dc.subject	DOMESTIC PRODUCERS
dc.subject	DYNAMIC PANEL
dc.subject	ECONOMETRIC ANALYSIS
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC ACTIVITY
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC IMPLICATIONS
dc.subject	ECONOMIC INTEGRATION
dc.subject	ECONOMIC LITERATURE
dc.subject	ECONOMIC POLICIES
dc.subject	ECONOMIC POLICY
dc.subject	ECONOMIC REFORM
dc.subject	ECONOMIC STATISTICS
dc.subject	ECONOMIC STUDIES
dc.subject	ECONOMIC THEORY
dc.subject	ECONOMICS
dc.subject	ECONOMIES OF SCALE
dc.subject	EDUCATED PEOPLE
dc.subject	EDUCATIONAL ATTAINMENT
dc.subject	EMPIRICAL EVIDENCE
dc.subject	EMPIRICAL GROWTH LITERATURE
dc.subject	EMPIRICAL LITERATURE
dc.subject	EMPIRICAL STUDIES
dc.subject	EMPLOYMENT EQUATIONS
dc.subject	ENFORCEMENT OF CONTRACTS
dc.subject	ERROR TERM
dc.subject	ESTIMATED COEFFICIENTS
dc.subject	ESTIMATION METHOD
dc.subject	ESTIMATION TECHNIQUES
dc.subject	EXOGENOUS VARIABLES
dc.subject	EXPLANATORY VARIABLES
dc.subject	EXPORT MARKET
dc.subject	EXPORTS
dc.subject	EXTERNAL CONDITIONS
dc.subject	FACTOR PRICE
dc.subject	FACTOR PRICE EQUALIZATION
dc.subject	FINANCIAL DEPTH
dc.subject	FINANCIAL DERIVATIVES
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL FLOWS
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL MARKET
dc.subject	FINANCIAL MARKET DEVELOPMENT
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL SECTOR
dc.subject	FISCAL POLICIES
dc.subject	FORECASTS
dc.subject	FOREIGN ASSETS
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN FIRMS
dc.subject	FOREIGN TRADE
dc.subject	FREE TRADE
dc.subject	FREE TRADE AGREEMENT
dc.subject	FREE TRADE AGREEMENTS
dc.subject	GDP
dc.subject	GDP PER CAPITA
dc.subject	GLOBAL ECONOMY
dc.subject	GLOBAL INTEGRATION
dc.subject	GLOBALIZATION
dc.subject	GRAVITY MODEL
dc.subject	GROWTH DETERMINANTS
dc.subject	GROWTH EFFECT
dc.subject	GROWTH PERFORMANCE
dc.subject	GROWTH RATE
dc.subject	GROWTH RATES
dc.subject	GROWTH REGRESSIONS
dc.subject	HUMAN CAPITAL
dc.subject	IMPACT OF TRADE
dc.subject	IMPERFECT COMPETITION
dc.subject	IMPORT TARIFFS
dc.subject	INCOME
dc.subject	INCOME CONVERGENCE
dc.subject	INCOME DISTRIBUTION
dc.subject	INCOME INEQUALITY
dc.subject	INCOME LEVELS
dc.subject	INCREASING RETURNS
dc.subject	INCREASING RETURNS TO SCALE
dc.subject	INEQUALITY DETERMINANTS
dc.subject	INFLATION RATE
dc.subject	INFRASTRUCTURE INVESTMENT
dc.subject	INFRASTRUCTURE PROVISION
dc.subject	INTERNATIONAL FINANCIAL INTEGRATION
dc.subject	INTERNATIONAL MARKETS
dc.subject	INTERNATIONAL TRADE
dc.subject	INVESTMENT RATE
dc.subject	LABOR MARKET
dc.subject	LABOR MARKETS
dc.subject	LAGGED DEPENDENT
dc.subject	LAGGED LEVELS
dc.subject	LAGGED VALUES
dc.subject	LANDLOCKED COUNTRIES
dc.subject	LDCS
dc.subject	LIFE EXPECTANCY
dc.subject	LOCAL CURRENCY
dc.subject	LONG RUN
dc.subject	MACROECONOMIC FLUCTUATIONS
dc.subject	MACROECONOMIC MANAGEMENT
dc.subject	MACROECONOMIC VOLATILITY
dc.subject	MACROECONOMICS
dc.subject	MARKET DEVELOPMENT
dc.subject	MARKET SIZE
dc.subject	MEASURE OF TRADE
dc.subject	MOBILE PHONES
dc.subject	MONETARY ECONOMICS
dc.subject	MULTINATIONAL FIRMS
dc.subject	0 HYPOTHESIS
dc.subject	OIL EXPORTER
dc.subject	OIL EXPORTERS
dc.subject	OUTPUT
dc.subject	OUTPUT PER CAPITA
dc.subject	PER CAPITA GROWTH
dc.subject	POLICY CHANGES
dc.subject	POLICY RESEARCH
dc.subject	POLITICAL ECONOMY
dc.subject	POLITICAL INSTABILITY
dc.subject	POLITICAL RISK
dc.subject	PORTFOLIO
dc.subject	POSITIVE EFFECTS
dc.subject	PRICE STABILITY
dc.subject	PRODUCTIVITY
dc.subject	PRODUCTIVITY GROWTH
dc.subject	PROMOTING GROWTH
dc.subject	PROTECTIONIST POLICIES
dc.subject	RANDOM WALK
dc.subject	REAL GDP
dc.subject	REFORM POLICIES
dc.subject	REGIONAL INTEGRATION
dc.subject	REGIONAL TRADE
dc.subject	REGIONAL TRADE AGREEMENTS
dc.subject	REGRESSION ANALYSIS
dc.subject	REGULATORY FRAMEWORK
dc.subject	RESOURCE ALLOCATION
dc.subject	SECONDARY ENROLLMENT
dc.subject	SECONDARY SCHOOLING
dc.subject	SERIAL CORRELATION
dc.subject	SMALL COUNTRIES
dc.subject	SPECIALIZATION
dc.subject	STANDARD DEVIATION
dc.subject	STATISTICAL ANALYSIS
dc.subject	STRUCTURAL POLICIES
dc.subject	TARIFF REDUCTIONS
dc.subject	TECHNOLOGICAL INNOVATION
dc.subject	TELECOMMUNICATIONS
dc.subject	TELEPHONE PENETRATION
dc.subject	TRADE AGREEMENT
dc.subject	TRADE BARRIERS
dc.subject	TRADE FLOWS
dc.subject	TRADE INTEGRATION
dc.subject	TRADE LIBERALIZATION
dc.subject	TRADE MORE
dc.subject	TRADE OPENNESS
dc.subject	TRADE PATTERNS
dc.subject	TRADE POLICIES
dc.subject	TRADE POLICY
dc.subject	TRADE REFORM
dc.subject	TRADE REFORMS
dc.subject	TRADE REGIMES
dc.subject	TRADE VOLUMES
dc.subject	TRADING COSTS
dc.subject	TRANSITIONAL CONVERGENCE
dc.subject	VOLUME OF TRADE
dc.subject	WAGES
dc.subject	WEALTH
dc.subject	WORLD DEVELOPMENT INDICATORS
dc.subject	WORLD ECONOMY
dc.subject	WORLD TRADE
dc.title	Trade and Economic Growth : Evidence on the Role of Complementarities for CAFTA-DR Countries
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region