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Investigating the Impact of Market Openness on Economic Growth for Poland: An Autoregressive Distributed Lag Bounds Testing Approach to Cointegration

Author

Listed:
  • Chaido Dritsaki

    (Department of Accounting and Finance, University of Western Macedonia, Kozani 50100, Greece.)

  • Pavlos Stamatiou

    (Department of Accounting and Finance, University of Western Macedonia, Kozani 50100, Greece.)

Abstract

The aim of this paper is to analyze the relationship between international trade, economic and financial development for Poland during the period 1990-2016. For the analysis of this relationship we apply the autoregressive distributed lag (ARDL) technique and the error correction model (ECM) as it was formed by Pesaran and Shin (1999) and Pesaran et al. (2001), as well as the augmented Cobb-Douglas production function formed by Mankiw et al. (1992). The results of ARDL test and ECM confirm the existence of long and short run equilibrium relationship among variables of the examined model. Capital seems to be a driver of economic growth both in the short and long run, while labor has a negative impact in Poland's economic growth. However, trade openness and financial development found to be insignificant on economic development both in the short and long run.

Suggested Citation

  • Chaido Dritsaki & Pavlos Stamatiou, 2019. "Investigating the Impact of Market Openness on Economic Growth for Poland: An Autoregressive Distributed Lag Bounds Testing Approach to Cointegration," International Journal of Economics and Financial Issues, Econjournals, vol. 9(6), pages 123-131.
    • Handle: RePEc:eco:journ1:2019-06-15
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    More about this item

    Keywords

    Cobb-Douglas production function; ARDL bounds test; Vector Error Correction Model;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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