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Abstract

This paper examines the effects of trade on economic growth and growth volatility. Using the 1967-1975 closure of the Suez Canal as an instrument for trade, I find that trade leads to higher economic growth, and lower probability of recession or economic slowdown. There is no evidence that trade reduces growth volatility, however.



Item Type: MPRA Paper -

Original Title: Growth volatility and trade: evidence from the 1967-1975 closure of the Suez Canal-

Language: English-

Keywords: economic growth, volatility, trade, IV method-

Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade OrganizationsF - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies-





Autor: Parinduri, Rasyad

Fuente: https://mpra.ub.uni-muenchen.de/39040/







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