In:
Review of Applied Management and Social Sciences, South Punjab Center for Research and Development (SPCRD), Vol. 4, No. 1 ( 2021-03-31), p. 205-213
Abstract:
This study aims at investigating the relationship between trade openness and economic growth after incorporating the role of institutions. Generalized method of moments (GMM) system technique is applied by using data of 17 major emerging market economies (EMEs) for the period 1995-2018. The empirical evidence suggests that trade liberalization affects economic growth positively and significantly while institutions play a supportive role in this regard. The interaction terms are also generated to test the impact of the institutional environment on the trade-growth relationship. The empirical results are robust to various specifications, confirming the positive role of institutions in trade- growth nexus. The countries should develop a conducive institutional and political environment to ensure the beneficial growth effects of trade liberalization policy.
Type of Medium:
Online Resource
ISSN:
2708-3640
,
2708-2024
DOI:
10.47067/ramss.v4i1.112
Language:
Unknown
Publisher:
South Punjab Center for Research and Development (SPCRD)
Publication Date:
2021
