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Role of trade openness and financial development in economic growth: panel evidence from South Asia

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  • Nilotpal Goswami

Abstract

The dynamic impact of financial development and trade openness on economic growth is examined for five major South Asia countries over the period 1985-2010 in the panel co-integration and causality framework. The results reveal the existence of long-run relationship between economic growth, trade openness and financial development. Further, trade openness and financial development play an important and significant role for economic growth in South Asian countries. This analysis shows that there is bidirectional causality between economic growth, trade openness and financial development.

Suggested Citation

  • Nilotpal Goswami, 2013. "Role of trade openness and financial development in economic growth: panel evidence from South Asia," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 6(3), pages 301-322.
    • Handle: RePEc:ids:ijtrgm:v:6:y:2013:i:3:p:301-322
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