IDEAS home Printed from https://ideas.repec.org/a/ids/ijsuse/v6y2014i2p142-170.html
   My bibliography  Save this article

Impact of trade openness on economic growth in a small, open, and developing economy: new instrumental variables for trade openness

Author

Listed:
  • Fayq Al Akayleh

Abstract

The existing huge literature on measuring trade openness, on the one hand, and the effect of trade openness on economic growth, on the other, all have failed to reach a clear-cut conclusion. Therefore, this paper's idea emerges by searching for an answer to the following two questions: how to measure openness to trade? And what is the actual impact of trade openness on economic growth? Taking Jordan as the case study, the main results of this paper are: 1) introducing reliable measures for trade openness; 2) collected tariff ratio (CTR) is the best indicator for trade policy measurement; 3) trade performance is very weakly explained by trade policy; 4) economic reform programmes under the supervision of IMF and World Bank did not improve the trade outcomes; 5) there is a robust and negative relationship between trade openness policy and economic growth in a developing country with a small size economy; 6) the qualified industrial zones (QIZs), which are a form of institutional measures for trade liberalisation, boosted exports but such a pattern of exports is not associated with economic growth.

Suggested Citation

  • Fayq Al Akayleh, 2014. "Impact of trade openness on economic growth in a small, open, and developing economy: new instrumental variables for trade openness," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 6(2), pages 142-170.
    • Handle: RePEc:ids:ijsuse:v:6:y:2014:i:2:p:142-170
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=60346
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fayq Al Akayleh, 2017. "Accession to World Trade Organization and its Implications for Trade Diversification and Economic Activity: Evidence from Saudi Arabia," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 3(12), pages 332-345, 12-2017.

    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:ids:ijsuse:v:6:y:2014:i:2:p:142-170. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=301 .

    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.