The Nature of Trade and Growth Linkages

This paper shows new empirical regularities indicating that the structure of trade connections affects the trade-growth nexus. System generalized method of moments estimations indicate that key structural features associated with the composition of...

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Main Authors:	Didier, Tatiana, Pinat, Magali
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	INTERNATIONAL TRADE ECONOMIC GROWTH OPENNESS INTRA-INDUSTRY TRADE LABOR SKILLS
Online Access:	http://documents.worldbank.org/curated/en/900341502818068705/The-nature-of-trade-and-growth-linkages http://hdl.handle.net/10986/27975

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recordtype	oai_dc
spelling	okr-10986-279752021-06-08T14:42:48Z The Nature of Trade and Growth Linkages Didier, Tatiana Pinat, Magali INTERNATIONAL TRADE ECONOMIC GROWTH OPENNESS INTRA-INDUSTRY TRADE LABOR SKILLS This paper shows new empirical regularities indicating that the structure of trade connections affects the trade-growth nexus. System generalized method of moments estimations indicate that key structural features associated with the composition of traded products and partners matter for growth. The results show that increases in the degree of intra-industry trade, greater insertion into the middle of global value chains, and increases in the shares of differentiated goods, skilled labor-intensive goods, and high-tech-intensive goods in traded baskets are all associated with higher income growth. An increase in the share of trade with countries at the core of the global trade network is also associated with greater growth effects. However, many of these effects are non-linear and depend on the degree of trade openness and labor force education. The results suggest that technological diffusion and learning spillovers play some role in the growth effects associated with the nature of trade connections. 2017-08-24T21:46:02Z 2017-08-24T21:46:02Z 2017-08 Working Paper http://documents.worldbank.org/curated/en/900341502818068705/The-nature-of-trade-and-growth-linkages http://hdl.handle.net/10986/27975 English en_US Policy Research Working Paper;No. 8168 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	INTERNATIONAL TRADE ECONOMIC GROWTH OPENNESS INTRA-INDUSTRY TRADE LABOR SKILLS
spellingShingle	INTERNATIONAL TRADE ECONOMIC GROWTH OPENNESS INTRA-INDUSTRY TRADE LABOR SKILLS Didier, Tatiana Pinat, Magali The Nature of Trade and Growth Linkages
relation	Policy Research Working Paper;No. 8168
description	This paper shows new empirical regularities indicating that the structure of trade connections affects the trade-growth nexus. System generalized method of moments estimations indicate that key structural features associated with the composition of traded products and partners matter for growth. The results show that increases in the degree of intra-industry trade, greater insertion into the middle of global value chains, and increases in the shares of differentiated goods, skilled labor-intensive goods, and high-tech-intensive goods in traded baskets are all associated with higher income growth. An increase in the share of trade with countries at the core of the global trade network is also associated with greater growth effects. However, many of these effects are non-linear and depend on the degree of trade openness and labor force education. The results suggest that technological diffusion and learning spillovers play some role in the growth effects associated with the nature of trade connections.
format	Working Paper
author	Didier, Tatiana Pinat, Magali
author_facet	Didier, Tatiana Pinat, Magali
author_sort	Didier, Tatiana
title	The Nature of Trade and Growth Linkages
title_short	The Nature of Trade and Growth Linkages
title_full	The Nature of Trade and Growth Linkages
title_fullStr	The Nature of Trade and Growth Linkages
title_full_unstemmed	The Nature of Trade and Growth Linkages
title_sort	nature of trade and growth linkages
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/900341502818068705/The-nature-of-trade-and-growth-linkages http://hdl.handle.net/10986/27975
_version_	1764466272707280896

The Nature of Trade and Growth Linkages

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