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Causal Relationship Between Trade Openness and Economic Growth: a Panel Data Analysis of Asian Countries

Year: 2019

Type: article

Abstract: This paper examines the causal relationship between economic growth and trade openness for 15 Asian countries over period 1990–2017. We have applied panel cointegration and causality approaches to examine the long-run and causal relationship between variables. Empirical results confirm the presence of cointegration between variables. The impact of trade openness on economic growth is found to be positive. The panel VECM Granger causality analysis reveals the bidirectional causality between economic growth and trade openness.Keywords: Trade Openness, Economic Growth, Panel Cointegration, Causality.JEL Classifications: F11, F14, F43, C23DOI: https://doi.org/10.32479/ijefi.8657

Source: International Journal of Economics and Financial Issues

DOI: 10.32479/ijefi.8657

Authors: Khandaker Jahangir Alam, Khairul Kabir Sumon

Institution: Begum Rokeya University

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $300