Quotation Badinger, Harald. 2008. Trade policy and productivity. European Economic Review 52 867-891.


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Abstract

Previous studies on the determinants of productivity emphasized the role of trade and institutions but omitted trade policy due to endogeneity concerns. This paper considers the role of one important element of trade policy: free trade agreements (FTAs). Based on recent work on the determinants of FTAs, we suggest an instrument which is based on the propensity to enter an FTA due to (exogenous) geographical characteristics. We find that differences in institutional quality and trade, due to variations in geography and trade policy, have a sizeable effect on productivity and can explain the huge variation in per capita income across countries.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Economic Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-A, WH-B
Language English
Title Trade policy and productivity
Volume 52
Year 2008
Page from 867
Page to 891
Reviewed? Y

Associations

People
Badinger, Harald (Details)
Organization
Institute for International Economics IN (Details)
Europainstitut (Badinger) (Former organization)
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