Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2003:26: Does Free Trade Really Reduce Growth? Further Testing Using the Economic Freedom Index

Niclas Berggren () and Henrik Jordahl
Additional contact information
Niclas Berggren: The Ratio Institute, Postal: P.O. Box 5095, SE-102 42 Stockholm, Sweden
Henrik Jordahl: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: 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.

Keywords: free trade; economic freedom; economic growth

JEL-codes: E61; F13; F43; O24; O40; P17

19 pages, October 23, 2003

Full text files

wp2003_26.pdf PDF-file 

Download statistics

Published as
Niclas Berggren and Henrik Jordahl, (2005), 'Does Free Trade Really Reduce Growth? Further Testing Using the Economic Freedom Index', Public Choice, vol 122, no 1-2, pages 99-114

Questions (including download problems) about the papers in this series should be directed to Ulrika Öjdeby ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:uunewp:2003_026This page generated on 2024-09-13 22:17:37.