Exam 2: Trade and Growth: the Empirical Evidence

After classifying countries as either strongly outward-oriented, moderately outward-oriented, moderately inward-oriented, or strongly inward-oriented, an influential 1987 World Bank study found that the average growth rates of the:

In their popular study, Jeffrey Sachs and Andrew Warner classified countries as being either open or closed to trade, and they found:

Statistical analysis:

Empirical studies of the relationship between foreign trade and economic growth most often specified the linear econometric models based on:

Sala-i-Martin's famous (1997) robust study entitled I Just Ran Two Million Regressions indicated that:

While the empirical studies clearly tell us that economic growth tends to be higher when a country opens its economy to international trade and international investment, these same studies:

Statistical studies that have looked at the sources of economic growth have found:

One of the most robust explanatory variables in growth regressions is:

From a broad economic perspective, technology is best described as: