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Understanding economic openness: a review of existing measures

Author

Listed:
  • Claudius Gräbner

    (Johannes Kepler University Linz
    University of Duisburg-Essen)

  • Philipp Heimberger

    (Johannes Kepler University Linz
    Vienna Institute for International Economic Studies (wiiw))

  • Jakob Kapeller

    (Johannes Kepler University Linz
    University of Duisburg-Essen)

  • Florian Springholz

    (Johannes Kepler University Linz)

Abstract

This paper surveys measures of economic openness, the latter being understood as the degree to which non-domestic actors can or do participate in a domestic economy. Based on the existing literature, the authors introduce a typology of openness indicators, which distinguishes between ‘real’ and ‘financial’ openness as well as ‘de-facto’ and ‘de-jure’ measures of openness. They use data collected on these indicators to analyze trends in openness over time and to conduct a correlation analysis across indicators. Finally, they illustrate the potential consequences of employing different openness measures in a growth regression framework.

Suggested Citation

  • Claudius Gräbner & Philipp Heimberger & Jakob Kapeller & Florian Springholz, 2021. "Understanding economic openness: a review of existing measures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 87-120, February.
  • Handle: RePEc:spr:weltar:v:157:y:2021:i:1:d:10.1007_s10290-020-00391-1
    DOI: 10.1007/s10290-020-00391-1
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    More about this item

    Keywords

    Economic openness; Trade openness; Financial openness; Globalization;
    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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