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Journal Article

59

Growth Effects of Anticipated Trade Liberalization and the Baldwin Multiplier

Published on 1 January 1998

According to Baldwin (1992)[Baldwin, R.E., 1992. Measurable dynamic gains from trade. Journal of Political Economy 100, 162–174] trade liberalization induces a medium-run investment-led growth process. This note points out that Baldwin’s own model would actually predict a significant initial drop in investment and aggregate income, when announcement effects are taken into account.

Authors

Image of Dirk Willenbockel

Dirk Willenbockel

Research Fellow

Publication details

authors
Willenbockel, D.
journal
Economics Letters, volume 59, issue 2

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