Fernández Puente, Adolfo C. Pérez González, Patricio
Year of Publication:
Economic analysis working papers 2008,6
This article proposes a critical revision of the relationship between commercial integration openness and economic growth, being as it is one of the richest fields in the economic literature. The interest of its effects on economic growth is strengthened by the disparity of results, caused by the indefinition of the integration process and the variety of proxies used to retain it. Firstly, it covers the theoretical background most of which belongs to the XVIII and XIX century. Secondly, it includes the studies related to the definition of import substitution policies that were applied by several developing countries during the 50s, 60s and 70s. Thirdly, it introduces the studies that defend the outward orientation approach, with special attention to the effects of commercial restrictions on prices, the role of the macroeconomic framework and the trade volume. Finally, it analyzes the effects of commercial integration on the specialization pattern, technological diffusion and the production scale in the context of endogenous growth models. It ends with some brief reflections.