Trade Barriers, Openness, and Economic Growth

Abstract

Using a long data set on openness and productivity, this article tests the influence of openness on total factor productivity (TFP) growth and per capita growth since 1870 for 16 industrialized countries. It is shown, in simple regressions, that growth is, by and large, independent of openness. However, once the interaction between openness and foreign knowledge is allowed for, productivity is positively affected by openness.

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