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Intereconomics

, Volume 26, Issue 2, pp 51–57 | Cite as

Trade as an engine of growth: The lewis versus riedel controversy revisited

  • Ivar Bredesen
  • Susann Strobel
Development Strategy
  • 50 Downloads

Abstract

Is there a stable quantitative relationship between the exports of developing countries and prosperity in developed countries? The controversy between Lewis and Riedel on this question is taken up anew in this paper and examined in the light of ten years of added data and by estimating additional relationships.

Keywords

Slope Coefficient Export Performance Food Export South East Asian Country International Trade Statistics 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 1.
    W. Arthur Lewis: The slowing down of the engine of growth, in: American Economic Review, Vol. 70, No. 4, pp. 555–564. Reprinted in: Mark Gersovitz (ed.): Selected Economic Writtings of W. Arthur Lewis, New York University Press, 1983.Google Scholar
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    James Riedel: Trade as an engine of growth in developing countries, in: The Economic Journal, 1984, pp. 56–73.Google Scholar
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    W. Arthur Lewis, op. cit. The slowing down of the engine of growth, in: American Economic Review, Vol. 70, No. 4, p. 556. Lewis considers world trade in primary products an acceptable proxy for LDC exports and the growth rate of industrial production in the developed countries as a proxy for prosperity in the developed countries.Google Scholar
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    James Riedel, op. cit. Trade as an engine of growth in developing countries, in: The Economic Journal, 1984, pp. 59.Google Scholar
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    Cf. also James Riedel, op. cit. Trade as an engine of growth in developing countries, in: The Economic Journal, 1984, p. 66.Google Scholar
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    For an explanation of this test procedure, see Damodar N. Gujarati: Basic Econometrics, 2nd edition, 1988, pp. 446–448.Google Scholar
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    For a precise listing of countries, see footnote 14.Google Scholar
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    United Nations: Yearbook of International Trade Statistics, various issues.Google Scholar
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    UNCTAD: Handbook of International Trade and Development Statistics, 1988, table 2.1.Google Scholar
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    W. Arthur Lewis, op. cit. The slowing down of the engine of growth, in: American Economic Review, Vol. 70, No. 4, pp. 287–288.Google Scholar
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    World Bank: Commodity and Price Trends, editions August 1980 and 1988/89. This source inter alia gives physical volume of exports making deflations unnecessary.Google Scholar

Copyright information

© HWWA and Springer-Verlag 1991

Authors and Affiliations

  • Ivar Bredesen
    • 1
  • Susann Strobel
    • 2
  1. 1.Finnmark CollegeAltaNorway
  2. 2.Institute of World EconomicsKielGermany

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