Multilateral trade and export-led growth in the world economy : Some post-war evidence

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

1 Scopus Citations
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Author(s)

  • Kenneth S. Chan
  • Vinh Q.T. Dang

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)689-703
Journal / PublicationEmpirical Economics
Volume38
Issue number3
Publication statusPublished - Jun 2010

Abstract

In this paper, we address an empirical question: is there evidence to substantiate the assumption that the post-war liberalization of world trade has actually led to a significant increase in the world GDP? In our attempt to answer that question, time series data in the Penn World Table 6. 1 are aggregated across countries to obtain a measure of world trade and output, and the total number of GATT/WTO member countries is employed as an explanatory variable to account for the impact of multilateral trade agreements, such as the Kennedy Round, Tokyo Round, and the Uruguay Round, on the trade-growth nexus. We then examine the relationship between world trade and the post-war GDP per worker across the world through the multivariate cointegration and error correction modeling and the Granger causality test. The results suggest that, at the global level, the post-war liberalization of multilateral trade has promoted both GDP and trade activities. There is also evidence that supports the export-led growth hypothesis in the world economy. © Springer-Verlag 2009.

Research Area(s)

  • GATT/WTO, World growth, World trade

Citation Format(s)

Multilateral trade and export-led growth in the world economy : Some post-war evidence. / Chan, Kenneth S.; Dang, Vinh Q.T.

In: Empirical Economics, Vol. 38, No. 3, 06.2010, p. 689-703.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review