《Does Trade Cause Growth》.pdf

Does Trade Cause Growth? Jeffrey A. Frankel; David Romer The American Economic Review, Vol. 89, No. 3. (Jun., 1999), pp. 379-399. Stable URL: /sici?sici=0002-82822989%3A3%3C379%3ADTCG%3E2.0.CO%3B2-U The American Economic Review is currently published by American Economic Association. Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at /about/terms.html. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at /journals/aea.html. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is an independent not-for-profit organization dedicated to and preserving a digital archive of scholarly journals. For more information regarding JSTOR, please contact support@. Sat Jan 6 10:41:32 2007 Does Trade Cause Growth? Examining the correlation between trade and income cannot identify the direction of causation between the two. Countries geographic characteristics, however, have important effects on trade, and are plausibly uncorrelated with other detemtinants of income. Thispaper therefore constructs measures of the geographic component of countries trade, and uses those measures to obtain instrume