22Apr 2017

THE IMPACT OF TRADE OPENNESS ON ECONOMIC GROTH IN THE MIDDLE EAST AND NORTH AFRICAN COUNTRIES: AN APPLICATION OF THE AUTOREGRESSIVE DISTRIBUTED LAG MODEL.

  • College of Administration &Financial Science - Department of Accounting by IT, Cihan University, Sulaimani, Kurdistan Region Government, Iraq.
Crossref Cited-by Linking logo
  • Abstract
  • Keywords
  • References
  • Cite This Article as
  • Corresponding Author

Trade and economic growth in the developing countries has been debated among researchers and economists with the expectation of growth being stimulated; up to date the evidence on its growth enhancing effects is mixed. This study investigates and evaluates changes in economic growth that are likely to result from changes in trade openness such as GDP per capita, import, export and gross capital formation, in the Middle East and North Africa. By using an application of the autoregressive distributed lag model (ARDL). Our results have indicated that trade openness, and exports have a various impact on economic growth in the case of Middle East and North African countries. This suggests that it is possible to stimulate economic growth through an outward-looking strategy of trade expansion. More significantly, the results suggest the importance as well as the need for the Middle East and North African countries to embark on trade policies in order to improve economic growth in the current world economy.

  1. Ali, W. and Abdullah A. (2015). The Impact of Trade Openness on the Economic Growth of Pakistan: 1980-2010. Global Business and Management Research: AnInternational Journal 7(2).120-129.
  2. Arif, S.And Ahmad, H. (2012). Impact of Trade Openness on Output Growth: Co integration and Error Correction Model Approach. International Journal of Economics and Financial Issues, 2(4).379-385.
  3. Bahmani-Oskooee, Mohsen, and RC Wing Ng. "Long-run demand for money in Hong Kong: an application of the ARDL model."International journal of business and economics?2 (2002): 147-155.
  4. Bhagwati, J. (1988) Export promoting trade strategy: issues and evidence. World Bank Research Observer 3, 27-58.
  5. Chatterji, M., Mohan, S. and Dastidar, S.G. (2014).Relationship between trade openness and economic growth of India: a time series analysis.Journal of Academic Research in Economics, 6 (1).45-69.
  6. Chang R., Kaltani L. and Loayza N.V. (2009). Openness can be good for growth: the role of policy complementarities. Journal of Development Economics,90.33-49.
  7. Dickey, D. A. and W. A. Fuller (1979).Distribution of the estimators for autoregressive time series with a unit root. Journal of the American statistical association 74(366a): 427-431.
  8. Harrison A. (1996). Openness and Growth: A Time Series, Cross Country Analysis for Developing Countries. Journal of Development Economics Vol 48, p. 419-447.
  9. Hassan and Kamrul, A F. (2005). Trade openness and economic growth: Search for a Causal Relationship. South Asian Journal of Management. Retrieved on 25th December,2010 fromhttp://findarticles.com/p/articles/mi_qa5483/is_200510/ai_n21
  10. Habibi, F. (2015). Does Trade Openness Influence Economic Growth?.International Journal of Economics and Business Administration, 1(2).120-127.
  11. Hassan, M.S. and R. Kalim, 2012. Military expenditure and poverty in Pakistan: A Complex Phenomenon.
  1. Masoud A.Khalid& MunadhilA.Jabar (2016). Can Trade Liberalization Stimulate Economic Growth, New Evidence from Jordan?.Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.7, No.6, 2016
  2. MASOUD ALI KHALID.The Impact of Trade Openness on Economic Growth in the Case of Turkey.Research Journal of Finance and Accounting. ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.7, No.10, 2016
  3. Mercan, M., Gocer, I., Bulut, S. and Dam, M. (2013). The Effect of Openness on Economic Growth for BRIC-T Countries: Panel Data Analysis. Eurasian Journal of Business and Economics, 6(11). 1- 14.
  4. Meschi, E., 2006. FDI and growth in MENA countries: an empirical analysis. In: The Fifth International Conference of the Middle East Economic Association, 10?12 March, Sousse.
  5. Michaely, M. (1977) Exports and growth: an empirical investigation.Journal of Development Economics 4, 49-53.
  6. Mintz, A., & Huang, C. (1990).Defense Expenditures, Economic Growth, and The" Peace Dividend". The American Political Science Review, 84(4) 1283-1293.
  7. Narayan, P.K., Smyth, R., 2005. Higher education, real income and real investment in China: evidence from Granger causality tests. Education Economics 14, 107?125.
  8. Ozoh, F.O,Uma, K.E and Ndubuisi, Paul (2016). The investigation of trade openness and resources utilization on economic growth:Nigeria in focus.? International Journal of Humanities, Arts, Medicine and Sciences (BEST: IJHAMS), 4(9).135-148
  9. Pilinkiene, V. (2016).Trade Openness, Economic Growth and Competitiveness.The Case of the Central andEastern European Countries.InzinerineEkonomika-Engineering Economics, 27(2).185?194
  10. Phillips, P.C.B., Perron, P., 1988. Testing for a unit root in time series regression.Biometrika 75, 335?346.
  11. Sach, D. J., & Warner, A. (1995). Economic Reforms and The Process of Global Integration. Brooking Papers on Economic Activity; 1995;1; ABI/ INFORM GLOBAL. http://dx.doi.org/10.2307/2534573
  12. Ulasan, B. (2012). Openness to International Trade and Economic Growth: A Cross-Country Empirical Investigation. Economics Discussion Paper No. 2012-25. doi.org/10.2139/ssrn.
  13. Umer,F. (2014). Impact of Trade Openness on Economic Growth of Pakistan: An ARDL Approach.? Journal of Business & Economic Policy, 1 (1).39-59.
  14. Yanikkaya, H. (2003). Trade openness and economic growth: A cross-country empirical investigation. Journal of Development Economics, 72(1).57‒
  15. Yeboah, O., Naanwaab, C., Saleem, S.andAkuffo, A. (2012). Effects of Trade Openness on Economic Growth: The Case of African Countries. Selected Paper prepared for presentation at the Southern Agricultural Economics Association Annual Meeting, Birmingham, AL.

[Sazan Taher Saeed and Masoud Ali Khalid. (2017); THE IMPACT OF TRADE OPENNESS ON ECONOMIC GROTH IN THE MIDDLE EAST AND NORTH AFRICAN COUNTRIES: AN APPLICATION OF THE AUTOREGRESSIVE DISTRIBUTED LAG MODEL. Int. J. of Adv. Res. 5 (Apr). 55-62] (ISSN 2320-5407). www.journalijar.com

masoud
Cihan University

DOI:

Article DOI: 10.21474/IJAR01/3781      
DOI URL: https://dx.doi.org/10.21474/IJAR01/3781

Download Full Paper

Download PDF No. of Downloads: 75 | No. of Views: 212