“Does economic openness increase income?” is retested using quantity measures of trade, finance, and domestic economic size, and the short answer is: “It de-pends”. The results show that Africa and the Americas lose from both trade and financial openness, while Asia gains from trade openness but loses from financial openness. The industrialized region benefits from both trade and financial open-ness. In all regions, the domestic base compensates for any adverse effects of economic openness. The overall experience of economies with openness can be enhanced with healthier external and domestic engagements. The case study on the Philippines finds that the country gains from trade and financial openness but not from the domestic base. In this case, economic progress is difficult because the gains from external engagement are wiped out by the losses from domestic economy disengagement.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
12802.
Find related papers by JEL classification: F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General F00 - International Economics - - General - - - General F20 - International Economics - - International Factor Movements and International Business - - - General F10 - International Economics - - Trade - - - General O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
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