IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v13y2008i2p157.html
   My bibliography  Save this article

Openness, Growth, and Development: Evidence from a Panel of East Asian Countries

Author

Listed:
  • Zohreh Shirani Fakhr

    (M.A. of Economics, University of Isfahan)

  • Azita Sheikhbahaie

    (M.A. of Economics, University of Isfahan)

Abstract

This paper examines the interaction between openness, growth, and development using a panel of ten developing East Asian countries (China, Japan, Korea, Malaysia, Indonesia, the Philippines, Singapore, Hong Kong, Macao and Vietnam) and five-year averages for the period, 1975-2005. Its primary objective is to determine whether there is a direct link between the level of development and openness, while controlling for the indirect effect of openness through its impact on economic growth. Using a two-equation simultaneous-equations model of development and growth and an alternative measure of openness, our findings suggest that openness has a positive influence on both economic growth and human development. We also find that while economic growth makes a positive contribution to development, the converse is not true in that the more developed a nation the slower its growth rate.

Suggested Citation

  • Zohreh Shirani Fakhr & Azita Sheikhbahaie, 2008. "Openness, Growth, and Development: Evidence from a Panel of East Asian Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 13(2), pages 157-174, fall.
    • Handle: RePEc:eut:journl:v:13:y:2008:i:2:p:157
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20082-8.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
    2. Pei-Pei Chen & Rangan Gupta, 2006. "An Investigation of Openness and Economic Growth Using Panel Estimation," Working Papers 200622, University of Pretoria, Department of Economics.
    3. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 613-646.
    4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    5. B. Bhaskara Rao & Rup Singh, 2010. "Effects of trade openness on the steady-state growth rates of selected Asian countries with an extended exogenous growth model," Applied Economics, Taylor & Francis Journals, vol. 42(29), pages 3693-3702.
    6. Mohsen Bahmani-Oskooee & Farhang Niroomand, 1999. "Openness and economic growth: an empirical investigation," Applied Economics Letters, Taylor & Francis Journals, vol. 6(9), pages 557-561.
    7. Niclas Berggren & Henrik Jordahl, 2005. "Does free trade really reduce growth? Further testing using the economic freedom index," Public Choice, Springer, vol. 122(1), pages 99-114, January.
    8. Dan Ben-David, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 653-679.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eriṣ, Mehmet N. & Ulaṣan, Bülent, 2013. "Trade openness and economic growth: Bayesian model averaging estimate of cross-country growth regressions," Economic Modelling, Elsevier, vol. 33(C), pages 867-883.
    2. Haq, Munshi Masudul, 2008. "Growth and openness: empirical evidence from Bangladesh," MPRA Paper 35732, University Library of Munich, Germany.
    3. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    4. Niclas Berggren & Mikael Elinder, 2012. "Is tolerance good or bad for growth?," Public Choice, Springer, vol. 150(1), pages 283-308, January.
    5. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    6. Lant Pritchett, 1997. "Divergence, Big Time," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 3-17, Summer.
    7. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    8. Jacob Braude & Yigal Menashe, 2004. "Does the Capital Intensity of Structural Change Matter for Growth?," Bank of Israel Working Papers 2004.10, Bank of Israel.
    9. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    10. Amavilah, Voxi Heinrich, 2006. "The Economic Impact on the Dominican Republic of Baseball Player Exports to the USA," MPRA Paper 1672, University Library of Munich, Germany.
    11. Fernanda Llussa, 2007. "Geography matters more: geographical and institutional determinants of income in Brazilian states," Nova SBE Working Paper Series wp517, Universidade Nova de Lisboa, Nova School of Business and Economics.
    12. Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1997. "Growth effects of European integration," European Economic Review, Elsevier, vol. 41(8), pages 1537-1557, August.
    13. Darko, Christian Kwasi, 2015. "Determinants of Economic Growth in Ghana," EconStor Preprints 123098, ZBW - Leibniz Information Centre for Economics.
    14. Sudip Ranjan Basu, 2004. "Economic Growth, Well-Being and Governance under Economic Reforms: Evidence from Indian States," IHEID Working Papers 05-2004, Economics Section, The Graduate Institute of International Studies.
    15. Uzma Zia, 2019. "An Evidence of Diverging SAARC Economies," PIDE-Working Papers 2019:170, Pakistan Institute of Development Economics.
    16. Stefanescu, Razvan & Dumitriu, Ramona, 2014. "Investigation on the relationship between Romanian foreign trade and industrial production," MPRA Paper 62547, University Library of Munich, Germany.
    17. Takahiro SATO, 2017. "India in the World Economy: Inferences from Empirics of Economic Growth," ESRI Discussion paper series 338, Economic and Social Research Institute (ESRI).
    18. Bakari, Sayef, 2017. "Why is South Africa Still a Developing Country?," MPRA Paper 80763, University Library of Munich, Germany.
    19. Claudius Gräbner & Philipp Heimberger & Jakob Kapeller & Florian Springholz, 2021. "Understanding economic openness: a review of existing measures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 87-120, February.
    20. Diaz-Bautista, Alejandro, 2002. "The role of telecommunications infrastructure and human capital: Mexico´s economic growth and convergence," ERSA conference papers ersa02p102, European Regional Science Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:13:y:2008:i:2:p:157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.