IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Investigating the Influence of Economic and Socio-Political Openness on Growth

  • Lena Malešević-Perović

    ()

    (University of Split, Faculty of Economics, Cvite Fiskovića 5, 21000 Split, Croatia)

  • Vladimir Šimić

    ()

    (University of Split, Faculty of Economics, Cvite Fiskovića 5, 21000 Split, Croatia)

  • Vinko Muštra

    ()

    (University of Split, Faculty of Economics, Cvite Fiskovića 5, 21000 Split, Croatia)

Registered author(s):

    This paper investigates the influence of international openness on economic growth in a sample of 32 European economies. The usual approach in the literature on the topic is to observe the impact of trade openness on growth. We, however, broaden this standard approach and analyse not only economic aspect of openness but also socio-political aspect. In our empirical analysis we use the TSLS (two stage least squares) estimator, whereby in the first step we use the standard growth regression that includes, among other variables, openness, and in the second step we include different determinants to instrument openness. Our research, in general, shows that openness is an important determinant of growth in a set of investigated countries. Trade openness and financial openness influence growth positively. The influence of institutions on growth is manifested mainly indirectly – through its influence on trade and financial openness.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://ijbesar.teiemt.gr/docs/volume6_issue3/openness_growth.pdf
    Download Restriction: no

    File URL: http://ijbesar.teiemt.gr/volume6_issue3.php
    Download Restriction: no

    Article provided by Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece in its journal International Journal of Economic Sciences and Applied Research (IJESAR).

    Volume (Year): 6 (2013)
    Issue (Month): 3 (December)
    Pages: 35-59

    as
    in new window

    Handle: RePEc:tei:journl:v:6:y:2013:i:3:p:35-59
    Contact details of provider: Web page: http://ijbesar.teiemt.gr/

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc.
    2. Keller, Wolfgang, 1996. "Absorptive capacity: On the creation and acquisition of technology in development," Journal of Development Economics, Elsevier, vol. 49(1), pages 199-227, April.
    3. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 451-71, June.
    4. Argentino Pessoa, 2007. "Innovation and Economic Growth: What is the actual importance of R&D?," FEP Working Papers 254, Universidade do Porto, Faculdade de Economia do Porto.
    5. Jean-Jacques Hallaert & Laura Munro, 2009. "Binding Constraints to Trade Expansion: Aid for Trade Objectives and Diagnostics Tools," OECD Trade Policy Papers 94, OECD Publishing.
    6. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    7. Léonce Ndikumana & Mina Baliamoune-Lutz, 2007. "The Growth Effects of Openness to Trade and the Role of Institutions: New Evidence from African Countries," UMASS Amherst Economics Working Papers 2007-05, University of Massachusetts Amherst, Department of Economics.
    8. Hildegunn Kyvik Nordås & Sébastien Miroudot & Przemyslaw Kowalski, 2006. "Dynamic Gains from Trade," OECD Trade Policy Papers 43, OECD Publishing.
    9. Wenjun Liu & Shoji Nishijima, 2012. "Productivity and Openness: Firm Level Evidence in Brazilian Manufacturing Industries," Discussion Paper Series DP2012-01, Research Institute for Economics & Business Administration, Kobe University.
    10. repec:umd:umdeco:rodriguez9901 is not listed on IDEAS
    11. Hyacinth Eme Ichoku & Chukwuma Agu & John Ele-Ojo Ataguba, 2012. "What do we know about pro-poor growth and regional poverty in Nigeria?," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 5(3), pages 147-172, December.
    12. Boyd, John H. & Smith, Bruce D., 1992. "Intermediation and the equilibrium allocation of investment capital : Implications for economic development," Journal of Monetary Economics, Elsevier, vol. 30(3), pages 409-432, December.
    13. P. K. Mishra, 2011. "The Dynamics of Relationship between exports and economic growth in India," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 4(2), pages 53-70, August.
    14. Sushil Kumar Haldar & Girijasankar Mallik, 2010. "Does Human Capital Cause Economic Growth? A Case Study of India," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 3(1), pages 7-25, July.
    15. Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series 609, The World Bank.
    16. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:6:y:2013:i:3:p:35-59. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kostas Stergidis)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.