Trade Structure and Growth

Abstract

This paper examines the empirical relationships between trade structure and economic growth, particularly the influence of natural resource abundance, export concentration and intra-industry trade. We test the robustness of these relationships across proxies, control variables, and estimation techniques. We find trade variables to be important determinants of growth, especially natural resource abundance and export concentration. In contrast to much of the recent literature, natural resource abundance appears to have a positive effect on growth whereas export concentration hampers growth.

Keywords: Trade, Growth, Natural Resoures

JEL Classification: O1, O13, F1, O4