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Measuring Economic Openness

Author

Listed:
  • Claudius Gräbner
  • Philipp Heimberger

    (The Vienna Institute for International Economic Studies, wiiw)

  • Jakob Kapeller
  • Florian Springholz

Abstract

A Review of Existing Measures and Empirical Practices This paper surveys existing measures of economic openness understood as the degree to which non-domestic actors can or do participate in a domestic economy. We introduce a typology of openness indicators which distinguishes between ‘real’ and ‘financial’ openness as well as between ‘de facto’ and ‘de jure’ measures of openness, and show that this classification indeed captures different dimensions of economic openness. The main contribution of the paper is to supply a comprehensive and novel data set of openness indicators available for interested researchers. Based on this effort, we analyse some trends in economic openness over time and provide a correlation analysis across indicators. Finally, we explore the practical implications of choosing from different openness measures within a growth regression framework and highlight that researchers should make the choice of the indicator based on explicit theoretical justifications that correspond to their specific research questions.

Suggested Citation

  • Claudius Gräbner & Philipp Heimberger & Jakob Kapeller & Florian Springholz, 2018. "Measuring Economic Openness," wiiw Working Papers 157, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:157
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    File URL: https://wiiw.ac.at/measuring-economic-openness-dlp-4741.pdf
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    References listed on IDEAS

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    2. Edwina E. Pereira & Albert E. Steenge, 2022. "Vulnerability and Resilience in the Caribbean Island States; the Role of Connectivity," Networks and Spatial Economics, Springer, vol. 22(3), pages 515-540, September.

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    More about this item

    Keywords

    economic openness; trade openness; financial openness; globalisation;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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