International Integration and Growth: A Survey and Empirical Investigation
Author(s)
Haveman, Jon D.; Lei, Vivian; Netz, Janet S.
Abstract
The authors attempt a comprehensive assessment of different forms of international integration on growth. In particular, the paper considers the impact of trade flows, of inward foreign direct investment, of preferential treatment of less-developed countries, and of membership in trade blocs. Results confirm that general openness and foreign direct investment into a country do lead to increased growth; that membership in a trade bloc facilitates growth; and that the variation in income in the trade bloc also encourages more rapid growth among member countries.
