International trade openness and its effect on economic growth in Latin American Countries
Résumé
This paper studies how the effect of trade openness on economic growth for Latin American Countries may depend on labor market policies that help a country take advantage of trade openness. To do so an extension of the Solow growth equation and a GMM estimator are used. The paper considers a panel-data for 14 Latin American countries over the period 2005-2012. Results showed that in the long run trade openness volume (import plus exports over GPD) has a positive impact on economic growth for LAC that may increase when countries have more flexible labor market policies. All else equal, empirical results show that trade openness volume is likely to benefit more LAC where it is legal to terminate the employment contract of a worker due to redundancy than those where it is forbidden.
Domaines
Economies et finances
Origine : Fichiers produits par l'(les) auteur(s)
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