Foreign Trade and Economic Growth a Panel Regression Analysis (original) (raw)
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The paper aims to study the realistic relationship between trade openness and economic growth of different countries. The year we are dealing from 1980 to 2010.For this paper we have worked and maintain secondary data. The methodologies that have been used are related to panel data. Specific test has been taken to diagnose result about the dependency of variable. In the study our results proved that trade openness and economic are significant. The proxies that we used for our variable were as follows. Trade openness is a multi-dimensional concept and hence measures of both trade barriers and trade volumes have been used as proxies for openness and some other proxies of trade openness, we were used such as Import Penetration ratio (IPR): This is a measure of trade intensity calculated as total imports as percentage of GDP. Data is founded from World Development Indicators (WDI). Trade share (TS) % GDP: International Journal of Economics, Commerce and Management, United Kingdom Licens...
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Abstract. Conventional wisdom suggests that openness of an economy promotes economic growth. There is still argument among economists concerning how a country’s macroeconomic variables and its economic growth interact in numerous econometric studies by using panel data. This paper examines the impact of openness on economic growth for the EU-15 area in 1996–2003. In our empirical work, we have used the panel data technique which is also called longitudinal data or cross-sectional time series data. Panel data is generally concerned with choosing among three alternative regressions that are named fixed effects, random effects and pooled model estimation. The variables used are growth, openness, price level, investment and government share of RGDP. We find that openness has had a weak but negative impact on economic growth in this region over this period. Also, we have found that an increase in investment and a decrease in government expenditure have supported economic growth in the EU-15 countries. Key words: panel data, economic growth , openness, EU-15 countries
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This paper examines the causal relationship between economic growth and trade openness for 15 Asian countries over period 1990-2017. We have applied panel cointegration and causality approaches to examine the long-run and causal relationship between variables. Empirical results confirm the presence of cointegration between variables. The impact of trade openness on economic growth is found to be positive. The panel vector error correction model Granger causality analysis reveals the bidirectional causality between economic growth and trade openness.
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In this study, relationship between foreign trade and economic growth had been examined for the countries of Eurasia Economic Union by using data in era of 1992-2015 with the help of panel data analysis. First of all, cross-sectional dependency and homogeneity test had been done in the study and it had been concluded that there is cross-sectional dependency in between the series. For this purpose, unit root and causality test considering the cross-sectional dependency had been applied. Relationship between the variables had been analyzed with the panel causality test developed by Konya (2006). It had been determined that there is bi-directional causality from growth to export and unidirectional causality from growth to import.