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Trade Openness and Growth: Is There Any Link?

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  • Sarkar, Prabirjit

Abstract

The present study examines the relationship between openness (trade-GDP ratio) and growth. Our cross-country panel data analysis of a sample 51 countries of the South during 1981-2002 shows that for only 11 rich and highly trade-dependent countries a higher real growth is associated with a higher trade share. Time series study of individual country experiences shows that the majority of the countries covered in the sample including the East Asian countries experienced no positive long-term relationship between openness and growth during 1961-2002. Our study of the experience of various regions and groups shows that only the Middle Income group exhibited a positive long-term relationship.

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File URL: http://mpra.ub.uni-muenchen.de/4997/1/MPRA_paper_4997.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4997.

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Date of creation: Sep 2007
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Handle: RePEc:pra:mprapa:4997
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Keywords: growth; opening up; liberalization; less developed countries and globalization;

Find related papers by JEL classification:

  • F02 - International Economics - - General - - - International Economic Order and Integration
  • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
  • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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Cited by:

  1. Serdar Birinci, 2013. "Trade openness, growth, and informality: Panel VAR evidence from OECD economies," Economics Bulletin, AccessEcon, vol. 33(1), pages 694-705.
  2. Chandran, V.G.R. & Munusamy, 2009. "Trade openness and manufacturing growth in Malaysia," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 637-647, September.
  3. Awad. T., 2012. "Trade Liberalization Policy And Growth By Sector: Is It Working For Jordan?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(2).
  4. Jiang, Yanqing, 2011. "Understanding openness and productivity growth in China: An empirical study of the Chinese provinces," China Economic Review, Elsevier, vol. 22(3), pages 290-298, September.

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