Trade Liberalization, Economic Crises, and Growth

Rod Falvey, Neil Foster, David Greenaway

Research output: Contribution to journalArticleResearchpeer-review

23 Citations (Scopus)

Abstract

Many economic reforms are undertaken during an economic crisis, but is a crisis a good time to undertake trade reform? We investigate whether an economic crisis at the time of trade liberalization affects a country's subsequent growth performance. We employ threshold regression techniques on five crisis indicators to identify the "crisis values" and to estimate the differential growth effects in the crisis and non-crisis regimes. Although trade liberalization in both crisis and non-crisis periods raises subsequent growth, we find that an internal crisis implies a lower acceleration and an external crisis a higher acceleration relative to the non-crisis regime.

Original languageEnglish
Pages (from-to)2177-2193
Number of pages17
JournalWorld Development
Volume40
Issue number11
DOIs
Publication statusPublished - Nov 2012

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trade liberalization
economic crisis
liberalization
economic growth
economics
trade reform
economic reform
regime
Economic crisis
Trade liberalization
Economic growth
regression
reform
performance
Values

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Falvey, Rod ; Foster, Neil ; Greenaway, David. / Trade Liberalization, Economic Crises, and Growth. In: World Development. 2012 ; Vol. 40, No. 11. pp. 2177-2193.
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Falvey, R, Foster, N & Greenaway, D 2012, 'Trade Liberalization, Economic Crises, and Growth' World Development, vol. 40, no. 11, pp. 2177-2193. https://doi.org/10.1016/j.worlddev.2012.03.020

Trade Liberalization, Economic Crises, and Growth. / Falvey, Rod; Foster, Neil; Greenaway, David.

In: World Development, Vol. 40, No. 11, 11.2012, p. 2177-2193.

Research output: Contribution to journalArticleResearchpeer-review

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