A new model of how exporting and importing affect two dimensions of economic development was recently developed and empirically tested by Mullen (1993) with cross-sectional data. This study replicates and extends the model and analysis in several important ways. To broaden the conceptual scope, additional theoretical approaches are discussed and incorporated into the model. Then an empirical evaluation is made using new data with time-lagged export and import variables. The results support the belief that international trade affects both dimensions of economic development positively. Although the results are most pronounced with a five-year lag, the study shows that trade not only raises the aggregate economic activity of nations, but also helps satisfy basic human needs.
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