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PRWP

Reproducibility package for The Trade-Growth Nexus: Evidence of Causality from Innovative Instruments for Trade

2023
Get Reproducibility Package
Reference ID
RR_WLD_2024_56
DOI
https://doi.org/10.60572/n6mn-wd14
Author(s)
Ibrahim Nana, Sephooko Ignatius Motelle, Susan K. Starnes
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Apr 01, 2024
Last modified
Apr 01, 2024
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation

    • Overview

    Abstract

    During the past decades, extensive literature has emphasized the role of both international trade and openness in fostering economic growth. Endogeneity bias is a nagging challenge for any empirical attempt to study the causal relationship between trade and economic growth. This study contributes to the existing stock of knowledge and helps to address these challenges by introducing new instrumental variables for trade. The study samples 197 countries over 1970–2020. The findings suggest that international trade has a positive and significant effect on gross domestic product per capita, which tends to be higher for emerging markets and development economies. Thus, the study provides an enhanced empirical foundation for the expectation that investments made to support trade are also good for economic growth, especially in emerging markets.

    Reproducibility Package

    Scripts
    Get Reproducibility Package
    Title
    Reproducibility package for The Trade-Growth Nexus: Evidence of Causality from Innovative Instruments for Trade
    Date
    2024-03
    Dependencies
    ivreg2, xtivreg2, ranktest, asdoc, xtabond2, outreg2, nwcommands. All dependency files are included in the folder Dofiles/ado of the reproducibility package.
    Instructions
    See README in reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Name
    Stata
    Version
    17

    Reproducibility

    Technology environment

    The code was run in a computer with the following specifications:
    – OS: Windows 10 Enterprise, version 21H2
    – Processor: Intel(R) Core(TM) i7-8665U CPU @ 1.90GHz 2.11GHz
    – Memory available: 15.8 GB
    – Software version: Stata 18.0
    Technology requirements

    Runtime: 40 minutes

    Data

    Datasets
    Name
    World Bank's World Development Indicators (WDI)
    Note
    WDI data was manually downloaded and saved in Stata format for the following variables: GDP (GDPCSUS2018.dta), country trade (TradeWBG.dta), World trade (WorldTrade.dta), and air transport freight capacity (Data_Air_transport2.dta). Data on country trade, school enrollment, capital formation, and inflation was manually downloaded and saved in Excel format (DataWDI.xlsx).
    Access policy
    Data is public and included in the package.
    Data URL
    https://databank.worldbank.org/source/world-development-indicators
    Name
    Data from the Direction of Trade Statistics (DOTS) of the IMF
    Note
    Country trade DOTS data was manually downloaded and saved in Stata format in the file TradeIMF.dta
    Access policy
    Data is public and included in the package.
    Data URL
    https://data.imf.org/?sk=9d6028d4f14a464ca2f259b2cd424b85
    Name
    Gravity dataset from the Centre d’études prospectives et d’informations internationales (CEPII)
    Note
    Trade proximity data from the Gravity dataset (Gravity_V202211.dta)
    Access policy
    Data is public and included in the package.
    Data URL
    http://www.cepii.fr/CEPII/fr/bdd_modele/bdd_modele_item.asp?id=8
    Name
    GeoDist dataset from the Centre d’études prospectives et d’informations internationales (CEPII)
    Note
    GeoDist contains data on bilateral trade distances. Data is in the file dist_cepii.dta.
    Access policy
    Data is public and included in the package.
    Data URL
    http://www.cepii.fr/CEPII/fr/bdd_modele/bdd_modele_item.asp?id=6
    Name
    UNCOMTRADE
    Note
    Bilateral trade data from the UN Comtrade Database was manually downloaded and saved in Stata format (Trade2018.dta).
    Access policy
    Data is public and included in the package.
    Data URL
    https://comtradeplus.un.org/
    Name
    Polity dataset from the Center for Systemic Peace
    Note
    The Polity dataset contains data on types of government in terms of democracy. The version Polity 4 was used for this work.
    Access policy
    Dataset is public but not included in the package. The most recent dataset version is available for download here: https://www.systemicpeace.org/inscrdata.html. Replicators may contact the data producers for accessing the version used in this reproducibility package with this contact information: https://www.systemicpeace.org/contactcsp.html
    Data URL
    https://www.systemicpeace.org/polityproject.html
    Name
    World Bank Country and Lending Groups
    Note
    World Bank classifications for income groups and lending groups (CLASS.dta).
    Access policy
    Data is public and included in the package.
    Data URL
    https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups
    Name
    Crude oil – exports data from the 2021 CIA World Factbook
    Note
    Data was manually downloaded and recoded to 1 if the country is a crude oil exporter and 0 otherwise (oilexporterscia.dta).
    Access policy
    Data is public and included in the package.
    Data URL
    https://www.cia.gov/the-world-factbook/about/archives/2021/field/crude-oil-exports/country-comparison
    Name
    Continents according to Our World in Data
    Note
    Continent by country data. Dataset was saved in two files: Continent.dta and Continentnode.dta. The latter has manually added country codes for easier data joins.
    Access policy
    Data is public and included in the package.
    Data URL
    https://ourworldindata.org/grapher/continents-according-to-our-world-in-data?tab=table
    Name
    IMF's World Economic Outlook Groups and Aggregates Information
    Note
    IMF's income level country classification (Income.dta).
    Access policy
    Data is public and included in the package.
    Data URL
    https://www.imf.org/en/Publications/WEO/weo-database/2023/April/groups-and-aggregates
    Data statement

    All data used for this reproducibility package are public but one dataset (Polity) is not included in the package. See dataset information for data access.

    Description

    Output
    Type
    Working paper
    Title
    The Trade-Growth Nexus: Evidence of Causality from Innovative Instruments for Trade
    Description
    Policy Research Working Paper (PRWP) 10645
    URL
    http://documents.worldbank.org/curated/en/099550412132341350/IDU0a68116e90579804937091a70918736db8633
    DOI
    https://doi.org/10.1596/1813-9450-10645
    Authors
    Author Affiliation Email
    Ibrahim Nana International Finance Corporation inana@ifc.org
    Sephooko Ignatius Motelle International Finance Corporation smotelle@ifc.org
    Susan K. Starnes International Finance Corporation sstarnes@ifc.org
    Date of production

    2023-12

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    international trade GDP growth instrumental variable
    Topics
    ID Topic Parent topic ID Vocabulary URI
    F15 Economic Integration F1
    F43 Economic Growth of Open Economies F4
    O47 Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence O4

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Ibrahim Nana International Finance Corporation inana@ifc.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reproducibility WBG DIME World Bank - Development Impact Department Verification and preparation of metadata
    Date of Production

    2024-03-25
    Document version

    1

    Citation

    Citation
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