Trade openness and the Phillips curve: The neglected heterogeneity and robustness of empirical evidence

Autor:	Sylvester Eijffinger, Zongxin Qian
Přispěvatelé:	Department of Economics, Research Group: Economics
Rok vydání:	2016
Předmět:	Macroeconomics Economics and Econometrics Phillips curve 05 social sciences Openness 0502 economics and business Openness to experience Economics Heterogeneity 050207 economics Robustness (economics) Empirical evidence Finance 050205 econometrics
Zdroj:	International Review of Economics & Finance, 44, 13-18. Elsevier Science BV
ISSN:	1059-0560
DOI:	10.1016/j.iref.2016.03.006
Popis:	A cross-country parameter homogeneity assumption is usually imposed in the literature to test the effect of trade openness on the slope of the Phillips curve. A conclusion from this literature is that trade openness has no significant effect in advanced industrial countries. In this paper, we argue that the validity of the parameter homogeneity assumption is not guaranteed from a theoretical perspective, and we find that this assumption is not valid for advanced industrial countries. Trade openness has significant effects on the slope of the Phillips curve in several industrial countries but the signs of the effects vary across countries.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::030d4235307679789bb25794ea02bb71 https://doi.org/10.1016/j.iref.2016.03.006 Zobrazit plný text záznamu Full Text from ScienceDirect