Year: 2022
Type: article
Abstract: We propose a novel approach to the study of international trade based on a theory of country integration that embodies a broad systemic viewpoint on the relationship between trade and growth. Our model leads to an indicator of country openness that measures a country's level of integration through the full architecture of its connections in the trade network. We apply our methodology to a sample of 204 countries and find a sizable and significant positive relationship between our integration measure and a country's growth rate, while that of the traditional measures of outward orientation is only minor and statistically insignificant.
Source: Journal of Applied Econometrics
DOI: 10.1002/jae.2920
Institutions: Goethe University Frankfurt, World Bank, Bocconi University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,550
OpenAlex ID: W4283749693