000			01094pab a2200169 454500
008			180718b2001 xxu||||| |||| 00| 0 eng d
100			_aLane, Philip R.
245			_aInternational trade and economic convergence: the credit channel
260			_c2001
300			_ap.221-40
362			_aApr
520			_aIn this paper, we examine a particular mechanism by which international trade accelerates economic convergence. We develop a model of growth under credit constraints in which international trade expands access to credit. We show in numerical simulations that reasonable values for openness generate convergence rates that match well the empirical estimates. We econometrically investigate a key prediction of the model - that more open economies exhibit greater debt to output ratios - and find substantial support in the data for this claim. This remains true even when we control for a host of additional factors and conduct robustness checks. - Reproduced
650			_aEconomic growth
650			_aInternational trade
773			_aOxford Economic Papers
909			_a48968
999			_c48968 _d48968