Total Factor Productivity, Trade Openness, and Economic Growth: Evidence From G20 Countries
Year: 2023
Type: article
Abstract: The intricate relationship between trade openness and economic growth has spurred extensive inquiry, yet definitively establishing whether trade openness indeed fuels higher economic growth remains elusive. This challenge stems from diverse methodologies and measures used in previous research. Analytical techniques and proxies for trade openness, alongside inconsistent findings, hinder conclusive outcomes. Comprehending the precise mechanisms linking trade openness and economic growth is complex, demanding meticulous empirical scrutiny. Utilizing panel data from 1990 to 2019, this study employs an Ordinary Least Squares (OLS) regression model to explore the interplay among trade liberalization, government size, capital, reserves, and GDP per capita in G20 nations. The dependent variable is GDP per capita growth, while the independent variables include trade openness, government size, capital, total reserves, and total factor productivity (TFP). This research hypothesizes a substantial link between these factors and economic growth, aiming to bridge existing gaps and offer a foundation for well-grounded economic strategies. By delving into this multifaceted relationship within a specific time frame and employing robust econometric techniques, this study contributes to a nuanced understanding of trade's ramifications for development. Its findings hold potential to guide evidence-based policymaking, informing decisions that steer global economic progress.
Authors: RAJESH KUMAR, Dr. DEBASIS NEOGI
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4386943348