An empirical study of trade openness and inflation in India

Chhabra, Megha; Alam, Qamar

doi:10.1007/s40622-020-00237-7

Cited by 10 publications

(3 citation statements)

References 21 publications

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“…The study of Evans (2007) also displayed a positive impact of trade on the inflation rate. The Indian economy also experienced higher inflation owing to trade openness as shown by the findings of Chhabra and Alam (2020). Samimi et al (2012) stated that the trade volume measure of openness is positively linked with inflation.…”

Section: Literature Reviewmentioning

confidence: 96%

“…For instance, the study of Yiheyis (2013) demonstrated that openness to trade has positively impacted the inflation rate in African economies. Similarly, Zakaria (2010) and Chhabra and Alam (2020) reported that trade openness has influenced the inflation rate positively in Pakistan and India. On the contrary, Samimi et al (2012) demonstrated that the traditional trade volume measure of trade openness is positively linked with the inflation rate, while overall globalization is negatively associated with the inflation rate.…”

Section: Introductionmentioning

confidence: 92%

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Trade Openness and Inflation Rate in China: Empirical Evidence from Time Series Data

Tahir,

Ali,

Naseem

et al. 2023

Economies

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This study empirically examines the influence of trade openness on the rate of inflation by focusing on the Chinese economy. The study utilizes data covering the period 1987–2019 and employs the autoregressive distributed lag model (ARDL) for the extraction of results from the designed models. The results of the study indicate that trade openness has indeed impacted the rate of inflation not only negatively but also significantly. This means that trade openness could be used as a tool to fight against higher inflation. Similarly, government expenditure, economic growth, exchange rate and money supply positively affect inflation. Money supply and government expenditures positively affect the rate of inflation in the short run. The study has important policy implications for the Chinese economy.

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Section: Literature Reviewmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 92%

Trade Openness and Inflation Rate in China: Empirical Evidence from Time Series Data

Tahir,

Ali,

Naseem

et al. 2023

Economies

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“…In this study, the dependent variable under consideration is inflation, while the independent variable of interest is political stability. Additionally, we incorporate several control variables, including Trade openness (Chhabra & Alam, 2020), Economic growth (Paul et al, 1997), Gross national Expenditure (Kandil & Morsy, 2011), Domestic credit (Nwachukwu et al, 2014), and Broad money (Moser, 1995).…”

Section: Source Of Datamentioning

confidence: 99%

Macroeconomic Determinants of Inflation in Bangladesh

Salma

2021

EJBMR

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The paper intends to investigate the key determinants of inflation in Bangladesh using the data for the period 2009-10 to 2019-20. The variables used in the study are broad money supply, foreign direct investments, GDP growth, foreign exchange rates and trade balance. Ordinary least squared method has been used to conduct the empirical analysis. The results found that broad money supply, foreign direct investments and trade balance has positive and significant association with the inflation. GDP growth has negative and insignificant relation with the inflation whereas foreign exchange has positive but insignificant association with the inflation. The unexpected event of Covid-19 has also found to have some contribution in affecting the inflation rate.

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Unlocking trade potential: gender equality, economic complexity and trade openness in the Developing-8 (D-8) countries

Sajid,

Hassan,

Rehman

et al. 2024

IJSE

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PurposePrioritizing the shift from a traditional economy towards complex integrated economies has been the top priority among policymakers to achieve sustainable development goals (SDGs). Countries involved in economic integration must safeguard their labor markets. The Developing-8 (D-8) is an alliance of economic cooperation including Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey, all of which are among the world’s largest labor-abundant countries but have insufficient attention toward labor market policies, especially in gender roles. This issue motivated this study, which aims to investigate the impact of economic complexity on trade through with the interaction of gender equality.Design/methodology/approachThe annual data for the panel of D-8 countries from 1990 to 2020 were collected. The Driscoll and Kraay (D-K) regression was employed for empirical investigation after observing the presence of autocorrelation, heteroscedasticity and cross-sectional dependency (CSD) across the sample.FindingsFindings show that the economic complexity index (ECI) and gender equality (GE) have a significant impact on trade openness (TO). Moreover, the interaction of GE and ECI strengthens the relationship between ECI and TO. Therefore, both factors worked together to enhance the trading system by supplying the nation with highly sophisticated and complex products.Research limitations/implicationsPolicymakers in D-8 countries should enable equal access to resources, investment and decision-making for both men and women. This leads toward stubble, innovative and complex products that enhance trade and goodwill in the international market.Originality/valueThis study incorporated GE as an interaction term in economic complexity and TO in D-8 countries for the first time, to the best of the authors' knowledge.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2023-0908

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An empirical study of trade openness and inflation in India

Cited by 10 publications

References 21 publications

Trade Openness and Inflation Rate in China: Empirical Evidence from Time Series Data

Trade Openness and Inflation Rate in China: Empirical Evidence from Time Series Data

Macroeconomic Determinants of Inflation in Bangladesh

Unlocking trade potential: gender equality, economic complexity and trade openness in the Developing-8 (D-8) countries

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