scholarly journals Econometric Analysis of Trade Openness and Economic Growth for Developing Countries

2016 ◽  
Vol 7 (1) ◽  
pp. 24
Author(s):  
Muhammad Tahir ◽  
Mohammad Saeed Lodhi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Trade Openness ◽  
Econometric Analysis

scholarly journals Impact of Trade Liberalization on Economic Growth of Nepal

2019 ◽  
Vol 8 ◽  
pp. 136-148
Author(s):  
Ramesh Bahadur Khadka
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Gross Domestic Product ◽  
Trade Liberalization ◽  
World Bank ◽  
Trade Balance ◽  
Trade Openness ◽  
Domestic Product ◽  
Total Trade ◽  
The Impact

Trade openness has been considered as an important determinant of economic growth. It has been witnessed during the past couple of decades that international trade openness has played a significant role in the growth process of both developed and developing countries. International organizations such as Word Trade Organization, International Monetary Fund and World Bank are constantly advising, especially developing countries, to speed up the process of trade liberalization to achieve high economic growth. In this context, this paper aims to analyze the impact of trade liberalization on economic growth of Nepal. For this purpose, all the data regarding gross domestic product, export, import, total trade, trade balance of Nepal from 1980 A.D. to 2013 A.D. published by World Bank (2014) were used. Both descriptive as well as inferential statistics were used to analyze the data. Correlation analysis was used to find the correlation between the selected variables. Multiple linear regression analysis was carried out to analyze the impact of the trade liberalization in economic growth of Nepal. Trade cost does not explain any influence in gross domestic product, export, import, total trade and trade balance. The impact of trade openness is positive for all variables except trade balance. Trade openness has influenced economy significantly; import increased with purchasing power, export also increased but service only. Therefore, there is gap in export and imports.

scholarly journals How do Globalization, Technological Change and Employment Impact Economic Growth in Developing Countries? Evidence from Panel Data Analysis

2018 ◽  
Vol 1 (1) ◽  
pp. 39-49
Author(s):  
Fatima Saleem ◽  
Fatima Farooq ◽  
Imran Sharif Chaudhry ◽  
Noreen Safdar
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Causality Analysis ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
The Impact

This study aims at exploring the impact of globalization, technology and employment on economic growth of developing economies. This study also observed the long-run, short-run and causality relationships between globalization, technological innovations, employment, and economic growth for 20 selected developing countries covering the data for period of 1991 to 2017.  Since stationary of variables is examined through ADF tests, Levin-Lin-Chu test, and IM-Pesaran-Shin test and resulted with mixed order of integration, Panel ARDL estimation techniques are employed to measure the long run effects of these variables on growth of selected economies. Dumitrescu-Hurlin panel Granger Causality test was applied for causality analysis. All variables have strong positive and significant relationship with growth. This study concluded that knowledge and research-based education have a key role in promoting long-run growth as evident from the ‘New growth theory’ of Romer. On the basis of these results, it is suggested that knowledge and research-based education should be promoted and export-oriented policies should also be encouraged to attain benefits of trade openness and globalization for accelerating economic growth on sustainable basis.

Impact of Trade Openness on Economic Growth in Emerging Economies: A Panel Data Analysis

2021 ◽  
Vol 9 (2) ◽  
pp. 210-216
Author(s):  
Muhammad Atiq Ur Rehman ◽  
Ruqia Shaheen ◽  
Farzana Munir
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Emerging Economies ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Export Promotion ◽  
Promotion Strategies

The role of international trade in boosting economic growth is imperative in the era of globalization and trade liberalization. A trade openness policy can help stimulate economic growth mainly in two ways. Firstly, technology is transferred from developed countries to developing countries through imports. Secondly, the export promotion strategies facilitate the innovations and inventions promoting competition among the producers. In this way, research-intensive specialization culture is flourished in developing countries. This study aims at examining the effect of global trade orientation on growth in 23 emerging economies for the period 1995-2018. The panel data estimation approach including fixed effect and generalized method of moments (GMM) reveal a positive and statistically significant influence of trade openness on economic growth.  The empirical results are robust to the various specifications, supporting the trade-led growth notion in the economies under consideration. The emerging economies can achieve higher growth rates through trade openness and export promotion strategies.

scholarly journals The Impact of Global Innovation on Economic Growth in Developing Countries

2020 ◽  
Vol 9 (2) ◽  
pp. 373
Author(s):  
Saleh Abdul Mola Al-Zaroog ◽  
Amer Abdul Fatah Baqir
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Labor Force ◽  
Trade Openness ◽  
Optimal Investment ◽  
Capital Formation ◽  
Global Innovation ◽  
Fixed Capital Formation ◽  
Innovation Output ◽  
The Impact

The study aimed at identifying the effect of innovation on economic growth in developing countries, relying on it determinants, namely fixed capital formation, labor force, trade openness and the global innovation index (GII). The study relied on panel data for 32 developing countries covering the period (2011-2018). The FMOLS methodology was adopted to estimate the relationships between the above Mentionedvariables. The study disclosed a positive and statistically significant relationship between economic growth and each offixed capital formation, labor force and the global innovation index (GII). However, trade openness was statistically insignificant. The reached several conclusion regarding the efficiency of innovation to enhance growth such as, creating a suitable environment for institutions to work in, enhancing the effectiveness of education, increasing expenditure on scientific research, optimal investment in human capital, freeing markets, encouraging the increase in the size of business and innovation output also . The study recommended that developing countries should focus intensely on translating innovation policies into national strategies, which can have a positive effect on economic growth.

scholarly journals The Digitalization – Economic Growth Relationship in Developing Countries and the Role of Governance

2021 ◽  
Vol 68 (4) ◽  
pp. 481-493
Author(s):  
Van Bon
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Digital Technology ◽  
Developing Economies ◽  
Research Question ◽  
Trade Openness ◽  
Policy Implications ◽  
Economic Activities ◽  
Advanced Economies ◽  
The Difference

Digital technology is emerging as one of the suitable solutions to help developing economies catch up with advanced economies in the context of globalization. Progress in digital technology promotes economic growth in developing economies because it reduces transaction costs in economic activities and improves workers’ skills and knowledge. Meanwhile, governance is the primary cause of economic growth. Therefore, this study raises a research question of whether governance significantly contributes to the digitalization – economic growth relationship in developing countries or not. For the answer, the study uses the difference GMM Arellano-Bond estimators to empirically examine the effects of digitalization, governance, and their interaction on economic growth for a group of 35 developing countries from 2006 to 2019. Then, the study applies the FE-IV estimator to check the robustness of estimates. The results indicate that digitalization and governance boost economic growth while their interaction hinders it. Furthermore, trade openness also increases economic growth. These findings suggest some crucial policy implications that governments in developing countries should establish appropriate conditions to promote digital technology so that citizens can peacefully express their views on government policies and regulations, which contributes to the economic development of the country.

scholarly journals The impact of taxes effects on the economic growth of developing countries in ASIA

2020 ◽  
Author(s):  
Văn Thuận Nguyễn ◽  
Xuân Hằng Trần ◽  
Minh Hằng Nguyễn ◽  
Thị Kim Chi Ng
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Method Of Moments ◽  
Positive Impact ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Estimation Methods ◽  
Policy Suggestions ◽  
The Impact

The objective of the study is to examine the impact of taxes on economic growth in developing countries in Asia during 18-year period (2000-2017). Using the estimation methods of OLS, FEM, REM, GLS and two-step system generalized method of moments (S-GMM) for panel data. Empirical results show that taxation has a positive impact on economic growth at level of 1%, while the most studies consider this to be a negative relationship. Besides, factors such as government spending, trade openness, inflation also have a significant impact on economic growth. On that basis, the study provides some policy suggestions for tax policies in these countries.

scholarly journals Causality between Trade Openness and Energy Consumption: What Causes What in High, Middle and Low Income Countries

2014 ◽  
Vol 53 (4II) ◽  
pp. 423-459
Author(s):  
Muhammad Shahbaz ◽  
Samia Nasreen ◽  
Chong Hui Ling ◽  
Rashid Sbia
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Energy Consumption ◽  
Scale Effect ◽  
Energy Demand ◽  
Trade Openness ◽  
Composite Effect ◽  
Domestic Production ◽  
Technique Effect ◽  
Advanced Technologies

Trade liberalisation has affected the flow of trade (goods and services) between developed and developing countries. The Heckscher-Ohlin trade theory reveals that under free trade, developing countries would specialise in the production of those goods that are produced by relatively abundant factors of production such as labour and natural resources. Developed countries would specialise in the production of those goods that are produced by human capital and manufactured in capital-intensive activities. Trade openness entails movement of goods produced in one country for either consumption or further processing to other country. Production of those goods is not possible without the effective use of energy. Trade openness affects energy demand via scale effect, technique effect and composite effect. Other things being same, trade openness increases economic activities, thus stimulates domestic production and hence economic growth. A surge in domestic production increases energy demand , which is commonly referred as scale effect. Such scale effect is caused by trade openness. Economic condition of the country and extent of relationship between economic growth and trade openness determine the impact of trade openness on energy consumption [Shahbaz, et al. (2013); Cole (2006)]. Trade openness enables developing economies to import advanced technologies from developed economies. The adoption of advanced technology lowers energy intensity. The use of advanced technologies result in less energy consumption and more output that is usually referred to as technique effect [Arrow (1962)]. Composite effect reveals the shift of production structure from agriculture to industry with the use of energy intensive production techniques. In initial stages of economic development economy is based largely on agriculture sector, thus the use of energy is relatively less. As economy starts shifting from agriculture to industry, the energy consumption increases.

scholarly journals Investigating Energy Use, Environment Pollution, and Economic Growth in Developing Countries

2020 ◽  
Vol 24 (1) ◽  
pp. 275-293 ◽  
Author(s):  
Hooman Abdollahi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Energy Consumption ◽  
Fossil Fuels ◽  
Energy Use ◽  
Total Population ◽  
Labour Force ◽  
Trade Openness ◽  
Environment Pollution ◽  
Bidirectional Relationship

AbstractAttaining continuous economic growth entails special consideration of energy sector and the environment. Compliance with this purpose may be more intricate in the uncertain milieu of developing countries. The present paper examines the nature of causality between energy consumption, environment pollution, and economic growth in 8 contiguous developing countries, considering GDP per capita, CO2 emissions, energy use, labour force, total population, urban population, capital formation, financial development, and trade openness. The author applied spatial simultaneous equations for random effects panel data to investigate the spatial interactions of adjacent countries over the period from 1998 to 2011. The findings reveal that energy consumption, environment degradation, and economic growth of a country influence those of its neighbours. Additionally, the results document bidirectional causal relationship between economic growth and environment pollution, as well as between environment pollution and energy consumption. Thus, there is a bidirectional relationship between energy use and economic growth. Fossil fuels replacement with renewable energy and usage of tax instruments to reduce greenhouse gas are recommended.

scholarly journals Urban population and economic growth: South Asia perspective

2016 ◽  
Vol 5 (1) ◽  
pp. 64 ◽  
Author(s):  
Sandip Sarker ◽  
Arifuzzaman Khan ◽  
Mehdad Mamur Mannan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
South Asia ◽  
Urban Population ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Unit Root Test ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Determinants Of Economic Growth

Previously economic growth was generally discussed in terms of foreign direct investment (FDI), educational growth, savings, investments, inflation as well as trade openness of a nation. Very recently it has been identified that population is one of the major determinants of economic growth of a nation. In the recent years, the study of urbanization has gained a matter of concern in developing countries as it has been recognized as part of a larger process of economic development which is affecting developing countries. South Asian countries are one of the emerging economics and growing at a faster rate over the past few years. At the same time, population of South Asia is growing at a significant rate. Therefore the study has attempted to identify the causal relationship between urban population and economic growth in South Asia using a panel data analysis. The study makes use of the Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP), Pesaran as well as Fisher methods for panel unit root test. The panel Pedroni cointegration test suggests that there is long run relationship between the variables. The further panel Vector Error Correction Model (VECM) suggests that there is long run causality running from urban population growth to economic growth in South Asia. The study concludes that the growth of urban population can have significant impact on economic growth in South Asia in the long run.

Sign in / Sign up

Export Citation Format

Share Document