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Unformatted text preview: Simple measures of trade barriers tend not to enter significantly into well-specified growth equations o Simple trade weighted averages underweight high tariffs- restrict import flows o Tariffs and non-tariff barriers may be substitutes: Beef tariffs vs. SPS (mad cow) Distinguishing the question: o Does trade policy liberalization result in faster growth one other relevant country characteristics are accounted for? OR o Does international trade raise growth rates of income No empirical evidence that protection brings about economic growth- however doesnt mean that openness always leads to growth Difference between bound and applied rates...
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- Spring '08