Things are different when you open up: Economic openness, domestic economy, and income

Edsel Beja

MPRA Paper from University Library of Munich, Germany

Abstract: “Does economic openness increase income?” is retested using quantity measures of trade, finance, and domestic economic size, and the short answer is: “It de-pends”. The results show that Africa and the Americas lose from both trade and financial openness, while Asia gains from trade openness but loses from financial openness. The industrialized region benefits from both trade and financial open-ness. In all regions, the domestic base compensates for any adverse effects of economic openness. The overall experience of economies with openness can be enhanced with healthier external and domestic engagements. The case study on the Philippines finds that the country gains from trade and financial openness but not from the domestic base. In this case, economic progress is difficult because the gains from external engagement are wiped out by the losses from domestic economy disengagement.

Keywords: Economic openness; trade; finance; domestic economy; income (search for similar items in EconPapers)
JEL-codes: B50 F00 F10 F20 F40 O10 (search for similar items in EconPapers)
Date: 2009-01-15
New Economics Papers: this item is included in nep-afr and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/12802/1/MPRA_paper_12802.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/16550/1/MPRA_paper_16550.pdf revised version (application/pdf)

Related works:
Working Paper: Things are different when you open up: Economic openness, domestic economy, and income (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:12802

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().