Impact of Trade Openness on Economic Growth in Emerging Economies: A Panel Data Analysis

Authors

  • Muhammad Atiq ur Rehman Adjunct Faculty at COMSATS University, Lahore, Pakistan
  • Ruqia Shaheen National University of Modern Languages, Islamabad, Multan Campus, Pakistan
  • Farzana Munir Bahauddin Zakariya University, Multan, Pakistan

DOI:

https://doi.org/10.52131/pjhss.2021.0902.01127

Keywords:

Trade Openness, Economic Growth, Secondary Schooling, Government Expenditure, Population Growth, Arable Land, Panel Data, GMM

Abstract

The role of international trade in boosting economic growth is imperative in the era of globalization and trade liberalization. A trade openness policy can help stimulate economic growth mainly in two ways. Firstly, technology is transferred from developed countries to developing countries through imports. Secondly, the export promotion strategies facilitate the innovations and inventions promoting competition among the producers. In this way, research-intensive specialization culture is flourished in developing countries. This study aims at examining the effect of global trade orientation on growth in 23 emerging economies for the period 1995-2018. The panel data estimation approach including fixed effect and generalized method of moments (GMM) reveal a positive and statistically significant influence of trade openness on economic growth.  The empirical results are robust to the various specifications, supporting the trade-led growth notion in the economies under consideration. The emerging economies can achieve higher growth rates through trade openness and export promotion strategies.

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Author Biographies

Muhammad Atiq ur Rehman, Adjunct Faculty at COMSATS University, Lahore, Pakistan

Assistant Professor, Higher Education Department, Punjab, Lahore

 

Ruqia Shaheen, National University of Modern Languages, Islamabad, Multan Campus, Pakistan

Lecturer, Department of Economics

Farzana Munir, Bahauddin Zakariya University, Multan, Pakistan

Assistant Professor, School of Economics

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Published

2021-09-30

How to Cite

Rehman, M. A. ur, Shaheen, R., & Munir, F. (2021). Impact of Trade Openness on Economic Growth in Emerging Economies: A Panel Data Analysis. Pakistan Journal of Humanities and Social Sciences, 9(2), 210–216. https://doi.org/10.52131/pjhss.2021.0902.01127

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Section

Articles