Market Access, Openness and Growth

34 Pages Posted: 27 Jun 2007 Last revised: 28 Aug 2010

See all articles by John Romalis

John Romalis

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Date Written: April 2007

Abstract

This paper identifies a causal effect of openness to international trade on growth. It does so by using tariff barriers of the United States as instruments for the openness of developing countries. Trade liberalization by a large trading partner causes an expansion in the trade of other countries. Trade expansion induced by greater market access appears to cause a quantitatively large acceleration in the growth rates of developing countries. Eliminating existing developed world tariffs would increase developing country trade to GDP ratios by one third and growth rates by 0.6 to 1.6 percent per annum.

Suggested Citation

Romalis, John, Market Access, Openness and Growth (April 2007). NBER Working Paper No. w13048, Available at SSRN: https://ssrn.com/abstract=986898

John Romalis (Contact Author)

University of Chicago - Booth School of Business ( email )

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National Bureau of Economic Research (NBER)

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