Trade openness and economic growth in the Asian region

Abstract

Purpose – This paper aims to focus on the Asian developing countries to examine the impact of trade openness on economic growth. Design/methodology/approach – Empirical analysis is carried out with the help of panel econometric techniques and two-stages least squares method. Findings – The results show that trade openness has contributed significantly to the growth process of the developing countries located in the Asian region. It is also found that domestic investment has influenced economic growth for the sampled countries. Further, the results show that human capital has adversely affected economic growth despite the fact that different proxy variables are used. Research limitations/implications – No positive relationship between education and economic growth could be established despite using different measures of education. However, this issue has been brought to the attention of researchers for further investigation. Practical implications – Developing countries located in the Asian region, therefore, are suggested to speed up the process of trade liberalization and also pay favourable attention to other determinants of economic growth to accelerate long-run economic growth. Originality/value – The results presented in the paper are original. Some insights about the impact of education on economic growth have been highlighted.