Impacts of trade openness on economic growth in Asia and Africa -A Panel Data Analysis Of Selected Developing Countries From 1998-2017

Author

MANGWIRO SHADRECK

Title

Impacts of trade openness on economic growth in Asia and Africa -A Panel Data Analysis Of Selected Developing Countries From 1998-2017

Abstract

Trade openness has a positive impact on economic growth, this debate is still open. It has a beneficial effect on the economy, according to studies conducted by a group of academics. Another group, however, discovered that it has no effects or detrimental effects. Examining how trade openness affects the development of the economies of 15 developing nations from South Asia, South East Asia, and Africa is the main goal of this study. 20 years, from 1998 to 2017, have been evaluated for the panel data analysis. For the purpose of conducting this analysis, the trade openness index, FDI, unemployment, and population have been taken into account as explanatory variables. The results of the fixed effects model indicated that trade liberalization has impact on economic expansion. Individual trade zone regression results, however, pointed to three distinct outcomes. Therefore, empirical research revealed that trade openness might have various consequences depending on the geographic location of the individual country and other policies of that country. The Granger Causality test has also been used to determine whether export, import, and economic growth are related in a cause-and-effect manner. Exports and GDP have been found to have a one-way relationship.

Date

2024

Publisher

BUSE

Keywords

Trade Openness
.

Economic Growth

SAARC

ASEAN

AFRICA

WDI

OLS Tests

Granger Causality Test

Supervisor

DR KAIRIZA