scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH: A CAUSALITY TEST IN PANEL PERSPECTIVE

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Jamilah Idris ◽  
Zulkornain Yusop ◽  
Muzafar Shah Habibullah
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Method Of Moments ◽  
Purchasing Power Parity ◽  
Trade Openness ◽  
Estimation Method ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
General Method Of Moments ◽  
General Method

Openness to trade has been one of the primary drivers stimulating growth. The goal of this particular study is to investigate the relationship between trade openness and economic growth in 87 selected countries which includes both Organizations for Economic Co-operation and Development (OECD) and developing countries for 1977–2011 periods. We used two measures of trade openness i.e. the ratio of trade openness (TO) typically spoke by exports plus imports in nominal value divided by GDP (nominal) which is commonly used in the literature, and trade openness in real (RO) which is defined as the sum of imports and exports in US$ relative to GDP in purchasing power parity US$ (real GDP). An empirical studywas conducted to determine the causal relationship between trade openness and growth in a panelperspective. We used a dynamic panel data estimation method i.e. the general method of moments (GMM). The empirical results reveal a bidirectional causal relationship for both developing and OECD countries. Our finding is consistent with the endogenous theory that increased openness leads to higher growth, which thus prompts expanded openness.Keywords: Openness; Economic Growth; Dynamic Panel General Method of Moments (GMM).

scholarly journals The Determinants Of Renewable Energy Consumption: An Empirical Analysis For The Balkans

2016 ◽  
Vol 12 (11) ◽  
pp. 594 ◽  
Author(s):  
Basak Gul Akar
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Panel Data ◽  
Trade Openness ◽  
Dynamic Panel Data ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Dynamic Panel ◽  
The Balkans

As a measure of development, energy has a priority in economic literature. However, both economic and social costs caused by traditional energy sources have led to question on the importance of these resources. In addition to this, various problems such as pollution and dependence on foreign energy has brought about new researches instead of existing energy sources. Alternative and renewable energy sources, which are named as “clean energy”, are expected to take the place of the old method. However, there are many factors affecting the use of new energy sources. These factors include energy prices, energy production, energy dependence, economic growth, trade openness, and the use of carbon dioxide. Besides, development levels of countries have a significant influence on the degree of interaction between these factors. In the present study, firstly, renewable energy consumption and the determinants of this energy use were discussed in the theoretical context. Consequently, the required empirical tests were applied for Balkan countries - Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Montenegro, Kosovo, Macedonia, Romania, Serbia, Slovenia, Turkey, and Greece. Dynamic panel data method was preferred for analysis. However, this panel covers a period between the years of 1998-2011. According to the results obtained through a dynamic panel data analysis, it was found that there is a negative and statistically significant relationship between economic growth and renewable energy consumption. On the other hand, trade openness and natural gas rents are determined to have a positive effect on renewable energy consumption in the Balkans.

Trade openness, labour market rigidity and economic growth: A dynamic panel data analysis

2017 ◽  
Vol 28 (4) ◽  
pp. 555-564
Author(s):  
Burçak Polat ◽  
Antonio Rodríguez Andrés
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Estimation Method ◽  
Dynamic Panel Data ◽  
One Step ◽  
Generalised Method Of Moments ◽  
Openness To Trade ◽  
The Relationship

The rapid liberalisation of trade policies since the 1990s has brought additional attention to the role of trade as an engine of economic growth. Although an abundant literature addresses the relationship between openness and economic growth, the real effect of trade liberalisation is still ambiguous and undetermined. Most previous studies have ignored the selection effects of strict labour regulations on international trade. The main objective of this study is to measure the role of labour regulations in moderating the contribution of trade to economic growth among 30 Organisation for Economic Co-operation and Development countries for the period 2006–2013. In doing so, we employ a one-step Generalised Method of Moments system estimation method. Our results reveal that openness to trade does not have a robust and significant effect on growth. However, the interaction of openness with strict labour regulations enhances the contributions of trade to growth.

The relationship between urbanization and economic growth

2018 ◽  
Vol 45 (2) ◽  
pp. 316-339 ◽  
Author(s):  
Ha Minh Nguyen ◽  
Le Dang Nguyen
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Dynamic Model ◽  
Estimation Method ◽  
Static Model ◽  
Dynamic Panel Data ◽  
Content Type ◽  
Non Linear ◽  
Asean Countries ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between urbanization and economic growth in ASEAN countries for the period 1993-2014. Design/methodology/approach The Granger causality test and the regression estimation method with static and dynamic panel data (FE, RE, Driscoll and Kraay, D-GMM and PMG) were used. The sample includes seven ASEAN countries: Brunei, Cambodia, Indonesia, Malaysia, Philippines, Thailand and Vietnam. Findings The results show that at least a causal relationship exists between urbanization and economic growth and urbanization positively impacts economic growth. However, the relationship between urbanization and economic growth is non-linear. The urbanization reaches a threshold after which it may impede the economic growth. The estimated threshold is 69.99 percent for the static model and 67.94 percent for the dynamic model. Research limitations/implications The evidence from this study suggests that there is a non-linear relationship between urbanization and the economic growth. Urbanization has the potential to accelerate the economic growth, and this potential will depend on the establishment of favorable institutions and investments in appropriate public infrastructure. Practical implications The decision on the model of urbanization needs to be based on social and environmental considerations as well as market-based economic efficiency. The quality of urbanization manifests in the way that people and businesses perceive when they come to cities and their position in the labor market, urban housing, niche commodity markets, supply chain, collaborative network and physical space for the operation of the business. Most ASEAN countries have not yet reached a high level of urbanization, despite having a number of policies for promoting urbanization to contribute to the economic growth. However, policymakers should find ways to facilitate the development of urbanization that contributes to economic growth, employment growth, environmental sustainability, rather than the pursuit of speeding up the process of urbanization. Originality/value Between urbanization and economic growth at least a causal relationship exists. Urbanization positively impacts economic growth. However, the relationship between urbanization and economic growth is non-linear. The urbanization reaches a threshold after which it may impede the economic growth. The estimated threshold is 69.99 percent for the static model and 67.94 percent for the dynamic model.

Sign in / Sign up

Export Citation Format

Share Document