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Effects of Trade Openness on the Steady State Growth Rates of Selected Asian Countries with an Extended Exogenous Growth Model

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  • Rao, B. Bhaskara
  • Singh, Rup

Abstract

The Solow growth model is extended with an endogenous growth framework to estimate the effects of trade openness on the steady state growth rate (SSGR). Estimates of the augmented production functions are used to compute the SSGRs for Singapore, Malaysia, Hong Kong, India and Thailand. That good policies increase the growth effects of openness is also tested with an interactive term. Our results show that Singapore has the highest SSGR of 2.75%, followed by Hong Kong and Thailand with 2.5%. India and Malaysia have lower SSGRs of 1.7% and 0.5% respectively.

Suggested Citation

  • Rao, B. Bhaskara & Singh, Rup, 2007. "Effects of Trade Openness on the Steady State Growth Rates of Selected Asian Countries with an Extended Exogenous Growth Model," MPRA Paper 5851, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5851
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    Cited by:

    1. Keshmeer Makun, 2017. "Trade Openness and Economic Growth in Malaysia," Foreign Trade Review, , vol. 52(3), pages 157-170, August.
    2. Peter Josef Stauvermann & Ronald Ravinesh Kumar & Syed Jawad Hussain Shahzad & Nikeel N. Kumar, 2018. "Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks," Economic Change and Restructuring, Springer, vol. 51(1), pages 49-68, February.
    3. Ronald Kumar & Peter Stauvermann, 2014. "Exploring the nexus between remittances and economic growth: a study of Bangladesh," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(4), pages 399-415, December.
    4. Kumar, Ronald Ravinesh & Kumar, Radika Devi & Patel, Arvind, 2015. "Accounting for telecommunications contribution to economic growth: A study of Small Pacific Island States," Telecommunications Policy, Elsevier, vol. 39(3), pages 284-295.
    5. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Patel, Arvind & Kumar, Radika Devi, 2014. "Exploring the effects of energy consumption on output per worker: A study of Albania, Bulgaria, Hungary and Romania," Energy Policy, Elsevier, vol. 69(C), pages 575-585.
    6. B. Bhaskara Rao & Artur Tamazian & Krishna Chaitanya Vadlamannati, 2011. "Growth effects of a comprehensive measure of globalization with country-specific time series data," Applied Economics, Taylor & Francis Journals, vol. 43(5), pages 551-568.
    7. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Loganathan, Nanthakumar & Kumar, Radika Devi, 2015. "Exploring the role of energy, trade and financial development in explaining economic growth in South Africa: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1300-1311.
    8. Rao, B. Bhaskara & Singh, Rup, 2009. "Panel data estimates of the growth and level effects of human capital in the selected Asian countries," MPRA Paper 19082, University Library of Munich, Germany.
    9. Zohreh Shirani Fakhr & Azita Sheikhbahaie, 2008. "Openness, Growth, and Development: Evidence from a Panel of East Asian Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 13(2), pages 157-174, fall.
    10. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Nikeel Kumar & Syed Jawad Hussain Shahzad, 2019. "Exploring the effect of ICT and tourism on economic growth: a study of Israel," Economic Change and Restructuring, Springer, vol. 52(3), pages 221-254, August.
    11. T. K. Jayaraman & Keshmeer Makun, 2019. "Digitisation as a Contingent Factor in India’s Financial Sector Development-growth Nexus: An Empirical Study," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(3), pages 306-326, August.
    12. Rup Singh, 2015. "Forces of economic growth in China, India, and other Asian countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(1), pages 62-81, May.
    13. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Samitas, Aristeidis, 2016. "The effects of ICT⁎ on output per worker: A study of the Chinese economy," Telecommunications Policy, Elsevier, vol. 40(2), pages 102-115.

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    More about this item

    Keywords

    Exogenous and Endogenous Growth; Trade Openness; Steady State Growth Rate; Country Specific Estimates with Time Series Data; Asian Countries;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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