The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian Countries
One of the rudiment features of international trade theory is that open economies achieve high economic growth rates than closed economies. The current study aims to investigate how economic freedom impacts economic growth. Therefore, economic growth model is estimated by using 17(Middle East and E...
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| Format: | Article |
| Language: | English |
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EconJournals
2013-03-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/410 |
| _version_ | 1797921693778313216 |
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| author | Mohammad Javad Razmi Ramiar Refaei |
| author_facet | Mohammad Javad Razmi Ramiar Refaei |
| author_sort | Mohammad Javad Razmi |
| collection | DOAJ |
| description |
One of the rudiment features of international trade theory is that open economies achieve high economic growth rates than closed economies. The current study aims to investigate how economic freedom impacts economic growth. Therefore, economic growth model is estimated by using 17(Middle East and East Asian) countries’ data during 2000-2009.In order to testing the data, panel data analysis is employed. The results show that overall index of economic freedom is positively and robustly correlated with growth, further, the results demonstrate that trade openness is positively associated and statistically significant determinant of growth. We find that economic freedom has significant effect on economic growth. Furthermore, we decompose the economic freedom index into the five categories constructing the index and observed that just index of size of government and index of access to sound money is negatively correlated with growth.
Keywords: Economic Freedom; Openness; Economic Growth; Panel Data
JEL Classifications: C33; F43; O50
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| first_indexed | 2024-04-10T14:19:31Z |
| format | Article |
| id | doaj.art-573d5338068e40fd988249082764bd32 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:19:31Z |
| publishDate | 2013-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-573d5338068e40fd988249082764bd322023-02-15T16:09:21ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382013-03-0132The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian CountriesMohammad Javad Razmi0Ramiar RefaeiFerdowsi University of Mashhad One of the rudiment features of international trade theory is that open economies achieve high economic growth rates than closed economies. The current study aims to investigate how economic freedom impacts economic growth. Therefore, economic growth model is estimated by using 17(Middle East and East Asian) countries’ data during 2000-2009.In order to testing the data, panel data analysis is employed. The results show that overall index of economic freedom is positively and robustly correlated with growth, further, the results demonstrate that trade openness is positively associated and statistically significant determinant of growth. We find that economic freedom has significant effect on economic growth. Furthermore, we decompose the economic freedom index into the five categories constructing the index and observed that just index of size of government and index of access to sound money is negatively correlated with growth. Keywords: Economic Freedom; Openness; Economic Growth; Panel Data JEL Classifications: C33; F43; O50 https://www.econjournals.com/index.php/ijefi/article/view/410 |
| spellingShingle | Mohammad Javad Razmi Ramiar Refaei The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian Countries International Journal of Economics and Financial Issues |
| title | The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian Countries |
| title_full | The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian Countries |
| title_fullStr | The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian Countries |
| title_full_unstemmed | The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian Countries |
| title_short | The Effect of Trade Openness and Economic Freedom on Economic Growth: The Case of Middle East and East Asian Countries |
| title_sort | effect of trade openness and economic freedom on economic growth the case of middle east and east asian countries |
| url | https://www.econjournals.com/index.php/ijefi/article/view/410 |
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