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Openness and growth in emerging Asian economies: Evidence from GMM estimations of a dynamic panel

Author

Listed:
  • Anupam Das

    () (Department of Policy Studies, Mount Royal University)

  • Biru Paksha Paul

    () (Department of Economics, State University of New York at Cortland)

Abstract

With the progress of globalization, the openness-output nexus has drawn more attention than ever before. Results in this aspect, however, are inconclusive. Based on the average growth rate for the last two decades, we select 12 top performed Asian countries: Bangladesh, China, India, Indonesia, Korea Republic, Malaysia, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, and Thailand. Working with these 12 emerging Asian economies over the 1971 to 2009 period, we find a positive and significant impact of openness on economic growth. The system GMM technique is used to overcome the shortcomings of endogeneity as found in most previous studies. While growth in labor force has insignificant effect on output growth, growth in capital stock exhibits a positive and significant impact on output growth. These findings have policy implications for other emerging economies of the world.

Suggested Citation

  • Anupam Das & Biru Paksha Paul, 2011. "Openness and growth in emerging Asian economies: Evidence from GMM estimations of a dynamic panel," Economics Bulletin, AccessEcon, vol. 31(3), pages 2219-2228.
  • Handle: RePEc:ebl:ecbull:eb-11-00473
    as

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    References listed on IDEAS

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    Cited by:

    1. Mariam Camarero & Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann & Cecilio Tamarit, 2016. "Trade Openness and Income: A Tale of Two Regions," The World Economy, Wiley Blackwell, vol. 39(3), pages 386-408, March.
    2. Shahbaz, Muhammad, 2012. "Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan," Economic Modelling, Elsevier, vol. 29(6), pages 2325-2339.
    3. Murshed Chowdhury, 2016. "Financial Development, Remittances and Economic Growth: Evidence Using a Dynamic Panel Estimation," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(1), pages 35-54, February.
    4. Moyo, Clement & Kolisi, Nwabisa & Khobai, Hlalefang, 2017. "The relationship between trade openness and economic growth: The case of Ghana and Nigeria," MPRA Paper 81317, University Library of Munich, Germany.
    5. Mihut Ioana & Luțas Mihaela, 2014. "Sustainable Growth: Recent Trends Across Central And Eastern European Economies," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 175-186, July.
    6. E. Tsanana & X. Chapsa & C. Katrakilidis, 2016. "Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3131-3147, July.

    More about this item

    Keywords

    Openness; growth; Asia; GMM estimations;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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