Once again, is openness good for growth?

Lee, Ha Yan; Ricci, Luca; Rigobón, Roberto

doi:10.1016/j.jdeveco.2004.06.006

Cited by 121 publications

(41 citation statements)

References 26 publications

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“…The coefficient for educational attainment, β 2 , is hypothesized as positive (Benhabib and Spiegel, 1994;Gylfason, 2001;Romer, 1990) as human capital contributes to growth. The coefficient for trade openness, β 3 , reflects the benefits of globalization and hypothesized as positive (Chang et al, 2009;Freund and Bolaky, 2008;Lee et al, 2004). As suggested by Barro (1991) and Levine and Renelt (1992), the coefficient for domestic investment expenditures as a share of GDP, β 4 , should yield a positive coefficient.…”

Section: Methodsologymentioning

confidence: 94%

The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration

2014

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Section: Methodsologymentioning

confidence: 94%

The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration

2014

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“…Several policy-oriented measures of trade openness have been developed in the literature (see Lee et al, 2004). Edwards (1998) proposes nine policy-oriented measures of trade openness in his paper.…”

Section: Construction Of the Trade Openness Measuresmentioning

confidence: 99%

Does Trade Openness Matter for Economic Growth in the CEE Countries?

Iyke

2017

Review of Economic Perspectives

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This paper sets out to answer the question: Is trade openness important for economic growth in the Central and Eastern European (CEE) countries? The policyoriented measures of trade openness used in earlier studies have been argued to be subjective, while the simple outcome-oriented measures only capture one aspect of trade openness, namely: countries' share of trade. Hence, following Squalli and Wilson (2011), the paper constructs a new outcome-oriented measure of trade openness which captures a country's share of trade, and its interaction and interconnectedness with the rest of the world. Using fixed-effects regressions for 17 CEE countries over the period 1994 -2014, the paper finds trade openness to be important for growth within the CEE countries. In particular, the results show that increases in trade openness is associated with increases in real GDP per capita growth within these countries. The results appear significantly the same after we dropped Croatia and Estonia -two historically closed economies.

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“…In the same manner, the relationship between trade openness and economic growth has been extensively discussed with mixed results. For instance, Yanikkaya (2003) and Jung and Marshall (1985) are of the view that no significant relationship exists between trade openness and economic growth, Lee, Ricci, and Rigobon (2004) opined that a positive relationship exists between the two. As argued by Aghion, Bloom, Blundell, Grith, and Howitt (2005), financial constraints deter poor countries from maximizing the advantages of technology transfer, and in turn induce a diversion from the growth rate of the world frontiers.…”

Section: Introductionmentioning

confidence: 99%

Economic growth, financial development and trade openness in Nigeria: An application of the ARDL bound testing approach

Lawal

Nwanji

Asaleye

et al. 2016

Cogent Economics & Finance

101

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For over a decade now, various efforts have been put in place by various governments of the developing economies to promote economic growth, financial development and expand trade with mixed results. The ability of financial development and/or trade openness to influence economic growth in the developing economies has been a subject of hot debate and remains inconclusive. While a number of scholars are of the view that compelling cointegration exists among each of these constructs, another set of substantial authors have documented that economic growth, trade openness and financial development do evolve independent of each other. Drawing from four financial developments-growth nexus theories, this study used the ARDL bound estimation techniques to examine the existence of cointegration among economic growth, financial development and trade openness in Nigeria. We intend to know what policy instruments need to be manipulated so as to achieve economic growth and financial stability. Our results show that a two-way cointegration exists between economic growth and financial development, on the one hand, as well as between economic growth and trade openness, on the other hand. We therefore recommend that in order to achieve economic growth, policymakers should pursue strong financial development and increase trade openness.

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Once again, is openness good for growth?

Cited by 121 publications

References 26 publications

The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration

The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration

Does Trade Openness Matter for Economic Growth in the CEE Countries?

Economic growth, financial development and trade openness in Nigeria: An application of the ARDL bound testing approach

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