Prethodno priopćenje
https://doi.org/10.56321/ijmbs.9.14.16
TRADE OPENNESS AND GDP GROWTH NEXUS: THE CASE OF OECD COUNTRIES
Hrvoje Jošić
orcid.org/0000-0002-7869-3017
; University of Zagreb Faculty of Economics & Business, Zagreb, Croatia
Sažetak
Economists have argued about the relationship between trade openness and economic growth for a very long time. Despite garnering a lot of attention in the literature for more than a century, we still don’t have a satisfying response to this subject. This study aims to examine the relationship between trade openness and GDP growth in the case of OECD countries, in the period from 1988 to 2020. In order to tackle data heterogeneity across countries and to form a robust (outlier resistant) regression, a quantile regression is used. Furthermore, panel dynamic GMM was used due to “more countries than timeperiod case“. Main findings of the paper validate the hypothesis that trade openness facilitates economic growth. Most of the explanatory variables have been significant in the regression models obtaining predicted signs of the regression coefficients, in accordance with the economic theory. The quantile regression modelling showed discrepancies between different quantiles. For tau equal to 0.25 the value of regression coefficient related to trade openness variable was negative.
Ključne riječi
trade openness; GDP growth; OECD countries; quantile regression; panel GMM
Hrčak ID:
307466
URI
Datum izdavanja:
1.7.2023.
Posjeta: 306 *