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Trade and Economic Growth - Is trade with large trading partners beneficial for growth?

Jönsson, Lina LU (2016) NEKP01 20162
Department of Economics
Abstract
Trade and economic growth have boomed over the latest centuries, and trade has for long been seen as an engine of economic growth. Research over the years has been consistent of the fact that there is a relationship between the two but it has not been established how this relationship works. This study contributes to earlier research by examining whether it is beneficial for domestic economic growth to trade with larger trading partners. In order to examine this we use a Solow-type model on a sample consisting of 34 OECD countries during the time period 1995-2012. Besides confirming the convergence hypothesis and somewhat a positive relationship between trade and growth the results show some signs of trade with larger economies having a... (More)
Trade and economic growth have boomed over the latest centuries, and trade has for long been seen as an engine of economic growth. Research over the years has been consistent of the fact that there is a relationship between the two but it has not been established how this relationship works. This study contributes to earlier research by examining whether it is beneficial for domestic economic growth to trade with larger trading partners. In order to examine this we use a Solow-type model on a sample consisting of 34 OECD countries during the time period 1995-2012. Besides confirming the convergence hypothesis and somewhat a positive relationship between trade and growth the results show some signs of trade with larger economies having a positive impact on growth. However, more research is needed on this topic before we can conclude a statistically significant relationship. (Less)
Please use this url to cite or link to this publication:
author
Jönsson, Lina LU
supervisor
organization
course
NEKP01 20162
year
type
H2 - Master's Degree (Two Years)
subject
keywords
trade, growth, technological progress, innovation, OECD
language
English
id
8893466
date added to LUP
2016-10-28 15:14:59
date last changed
2016-10-28 15:14:59
@misc{8893466,
  abstract     = {Trade and economic growth have boomed over the latest centuries, and trade has for long been seen as an engine of economic growth. Research over the years has been consistent of the fact that there is a relationship between the two but it has not been established how this relationship works. This study contributes to earlier research by examining whether it is beneficial for domestic economic growth to trade with larger trading partners. In order to examine this we use a Solow-type model on a sample consisting of 34 OECD countries during the time period 1995-2012. Besides confirming the convergence hypothesis and somewhat a positive relationship between trade and growth the results show some signs of trade with larger economies having a positive impact on growth. However, more research is needed on this topic before we can conclude a statistically significant relationship.},
  author       = {Jönsson, Lina},
  keyword      = {trade,growth,technological progress,innovation,OECD},
  language     = {eng},
  note         = {Student Paper},
  title        = {Trade and Economic Growth - Is trade with large trading partners beneficial for growth?},
  year         = {2016},
}