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Does free trade really reduce growth?: Further testing using the economic freedom index
The Ratio Institute, Stockholm, Sweden.
Department of Economics, Uppsala University, Uppsala, Sweden.ORCID iD: 0000-0001-8857-6116
2005 (English)In: Public Choice, ISSN 0048-5829, E-ISSN 1573-7101, Vol. 122, no 1-2, p. 99-114Article in journal (Refereed) Published
Abstract [en]

While studies of the relationship between economic freedom and economic growth have shown it to be positive, significant and robust, it has rightly been argued that different areas of economic freedom may have quite different effects on growth. Along that line, Carlsson and Lundström (2002) present the surprising result that "International exchange: Freedom to trade with foreigners" is detrimental for growth. We find that "Taxes on international trade" seems to drive this result. However, using newer data and a more extensive sensitivity analysis, we find that it is not robust. Least Trimmed Squares-based estimation in fact renders the coefficient positive.

Place, publisher, year, edition, pages
Springer, 2005. Vol. 122, no 1-2, p. 99-114
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-72661DOI: 10.1007/s11127-005-3994-2ISI: 000228644800005Scopus ID: 2-s2.0-23644432375OAI: oai:DiVA.org:oru-72661DiVA, id: diva2:1290897
Funder
Ragnar Söderbergs stiftelseTorsten Söderbergs stiftelseThe Jan Wallander and Tom Hedelius FoundationAvailable from: 2019-02-21 Created: 2019-02-21 Last updated: 2019-02-22Bibliographically approved

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Jordahl, Henrik

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