Economic growth, globalization and trade

• Author(s): Leitão, Nuno Carlos
• Date: 2012
• Persistent ID: http://hdl.handle.net/10400.15/731
• Origin: Repositório Científico do Instituto Politécnico de Santarém
• Subject(s): Exogenous models; Endogenous models; Panel Data; United States
• Document Type: Article
• Language: English

Description

The purpose of this article is to investigate the relationship between economic growth, globalization and trade. The manuscript uses the assumptions of the economic growth exogenous and endogenous models. It introduces new proxies for explain the economic growth as in intra-industry trade, foreign direct investment and globalization index. The results indicate that economic growth is a dynamic process. The intra-industry has a positive impact on economic growth. This paper confirms relevant theoretical hypothesis as foreign direct investment and globalization promotes the economic growth. The good results obtained with GMM system estimator suggest that the building of dynamic theoretical models will be of interest to academic researchers.