Empirical studies of the relationship between foreign trade and economic growth most often specified the linear econometric models based on:

Question

Quizplus · Accepted Answer

The Cobb-Douglas production function is often used in empirical studies to model the relationship between foreign trade and economic growth as it allows for the inclusion of various factors of production, such as labor, capital, and technology. Using this function, researchers can directly estimate the impact of foreign trade on economic growth while controlling for other relevant variables.

Empirical Studies of the Relationship Between Foreign Trade and Economic