Impact of Trade Openness on Economic Growth among ECOWAS Countries: 1975-2017

Ijirshar, Victor Ushahemba

doi:10.33429/cjas.10119.4/6

Cited by 31 publications

(26 citation statements)

References 64 publications

(16 reference statements)

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“…In Asian countries, Bajwa and Siddiqi [51] confirmed that three countries have a negative and statistically significant relationship with GDP in the years 1972 to 1985, while it was positive for Pakistan, and from 1986 to 2007 all countries had a positive effect on economic growth. In the case of Economic Community of West African States (ECOWAS) countries, a significant and positive relationship between trade openness and economic growth was observed [52]. Another remarkable study by Nguyen [53] conducted in three Northeast Asian countries found that trade openness accelerates the level of economic growth.…”

Section: Introductionmentioning

confidence: 97%

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

et al. 2020

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The aim of this study is to analyze the impact of trade openness and human capital on economic growth in 19 Asian countries from 1985 to 2017. We selected two geographically distributed regions (Western and Southern Asia) based on difference in their GDP per capita. We applied the unit root tests to examine the level of stationarity and found that all variables were integrated at first difference. Kao and Fisher cointegration tests were employed and the results revealed the presence of a long-run relationship. We applied fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models to check the magnitude of the long-run coefficients among trade openness, human capital and economic growth. To investigate the direction of causality, we used a Dumitrescu and Hurlin (DH) causality test. The results indicated that trade openness and human capital have a significant and positive relationship while labor force participation has a negative effect on economic growth in Southern Asia, and in the case of Western Asia, the impact is positive. Foreign direct investment (FDI) has a negative and significant impact on GDP per capita (GDPPC) in Western Asia while it is positive and significant in Southern Asia; Total population (TPOP) has a negative impact on GDPPC in both regions. Furthermore, human capital has a positive and significant impact on trade openness in both panels. Meanwhile, labor force participation (LFP) has a positive and significant impact on trade openness in Southern Asia and a negative impact in the case of Western Asia. Trade openness and economic growth have bidirectional causality in Western Asia and unidirectional causality in Southern Asia. It also shows that human capital and economic growth have unidirectional causality in both regions. promotes growth in several ways. It increases capital formulation and expands markets through an increase in investment [4,5]. It creates enormous benefits to the country's industrial sectors through developing new methods of production and increases the level of employment by creating more job opportunities, and may lead to poverty reduction [6]. There are three tools to measure the ratio of trade openness: one of them is the ratio of total trade volume (import and export) to GDP [7]; the second is the ratio of import and export to total population [8], and finally it can be calculated on the basis of tariff rates. In the current economic scenario, no country can develop successfully without trade openness, investment, and the migration of people. Published literature explored the positive impact of labor productivity on trade openness [9,10]. Trade openness and FDI bring technological transformation in an economy and also help to enhance the human capital of that particular economy [11].Human capital is also observed as a fundamental source of economic growth [12]. It enhances the total productivity level and potential earnings of the labor force [13]. Human capital is also estimated by skills, qualification, ability to create new produ...

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Section: Introductionmentioning

confidence: 97%

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

et al. 2020

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“…GDP is determined every year, sometimes referred to as Annual GDP. The annual GDP is the total monetary worth of a country's final products and services at market prices for a particular year (Ijirshar, 2019). The Gross Domestic Product, also abbreviated as GDP, is one of the vital tools used by economists to measure or gauge the production level of any economy or the strength of any economy.…”

Section: Gdpmentioning

confidence: 99%

“…According to (Ijirshar 2019), the total earnings, stock capital, and other capital reinvestment are referred to as foreign direct investments. All those Investments in the boundaries of a country are considered the Foreign Direct Investment (FDI) if the 10% or more equity shares of that investment belong to the people who are not the residents of that country.…”

Section: Fdimentioning

confidence: 99%

“…It was observed from the different papers that the balance of trade has a significant impact on the GDP of India and so many Asian countries, which are developing nations (Prabhakar & Rentala, 2019). Trade is the exchange of goods and services across a country's border (Ijirshar, 2019). A study was conducted on the top five emerging economies of the world, including 1993 to 2016.…”

Section: Trade Balancementioning

confidence: 99%

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Macroeconomic Variables the Indicators for the Economic Growth of Pakistan

Irshad¹

2022

PSSR

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Gross Domestic Product (GDP) is one of the most important measurements used by experts to assess a country's economic health. Almost all Government and financial decision-makers use GDP as a planning and policy formulation indicator. GDP incorporates the market values of all a country's total products and services over a specified period. This study aims to examine the impact of the Foreign Direct Investment (FDI), Trade Volume, and the Exchange Rate of Pakistani Currency Rupees concerning the Dollar on the Gross Domestic Products of Pakistan from 1972 to 2021. The nature of this study is quantitative, so used the deductive approach. The Secondary data for the GDP, FDI, Exchange rate, and the balance of trade was taken from the World Bank's website from 1971 to 2020. The data analysis technique was the regression method which the E-Views did.From the results of this study, it was found that FDI and the exchange rate have a significant impact on the Economic growth GDP of Pakistan. The effect of the foreign direct investment was positive, while the effect of the exchange rate on the GDP was negative. Balance of trade has an insignificant effect on the GDP of Pakistan. From this study, it is concluded that the Government must create a Peaceful environment for a foreigner to invest in Pakistan because it has a significant positive impact on the economic growth of Pakistan. It is also suggested to the Government that the money value fall should be controlled because it negatively impacts the country's economic development

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“…Many benefits will be obtained through international trade, including obtaining goods that cannot be produced at home, benefiting from specialization, and technology transfer (Makhmutova & Mustafin, 2017;Elias et al, 2018). However, international trade can become an obstacle to high economic growth if a growing number of imports is not accompanied by an increase in exports with a flat growth rate (Ijirshar, 2019). Reduced national income due to an increase in imports is more significant than the increase in national income due to an increase in exports will cause a decline in economic growth.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Monetary Policy and International Trade on Economic Growth and Inflation in ASEAN-4 Countries

Astuti

Udjianto

2022

Signifikan

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Economic growth and price stability are the main goals ofmacroeconomics, among other goals. The central bank can influencethe economy to achieve the desired condition through its monetarypolicy. This study aims to analyze the effect of monetary policy andinternational trade on economic growth and inflation in four ASEANcountries (Indonesia, Malaysia, the Philippines, and Thailand),using panel data analysis and vector autoregression. The impulseresponse results show that monetary policy with an interest rate policyinstrument hurts economic growth in the short run and is positive inthe long run. In the short run, an expansionary monetary policy haseffectively accelerated economic growth, vice versa. International tradepositively affects economic growth in ASEAN-4 countries in the shortrun and vice versa in the long run. Panel data analysis shows a pricepuzzle regarding the effect of interest rates on inflation. Likewise, theeffect of international trade on inflation shows a positive influence.An increase in exports encourages an increase in aggregate demandand prices. The implications of the results of this study are the needfor policy coordination monetary policy, trade policy, and policy inthe real sector so that the effectiveness of monetary policy increases.How to Cite:Astuti, R. D., & Udjianto, D. W. (2022). The Impact of Monetary Policy and International Trade on Economic Growth and Inflation in ASEAN-4 Countries. Signifikan: Jurnal Ilmu Ekonomi, 11(1), 175-190. https://doi.org/10.15408/sjie.v11i1.22142.

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Impact of Trade Openness on Economic Growth among ECOWAS Countries: 1975-2017

Cited by 31 publications

References 64 publications

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

Macroeconomic Variables the Indicators for the Economic Growth of Pakistan

The Impact of Monetary Policy and International Trade on Economic Growth and Inflation in ASEAN-4 Countries

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