Causal Relationship between Trade Openness and Economic Growth: A Panel Data Analysis of Asian Countries

Khandaker Jahangir Alam and Khairul Kabir Sumon
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Khandaker Jahangir Alam: Department of Economics, Begum Rokeya University, Rangpur 5400, Bangladesh,
Khairul Kabir Sumon: Department of Finance and Banking, Begum Rokeya University, Rangpur 5400, Bangladesh

International Journal of Economics and Financial Issues, 2020, vol. 10, issue 1, 118-126

Abstract: 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 VECM Granger causality analysis reveals the bidirectional causality between economic growth and trade openness.

Keywords: Trade Openness; Economic Growth; Panel Cointegration; Causality. (search for similar items in EconPapers)
JEL-codes: C23 F11 F14 F43 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2020-01-15

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