Linkages between trade openness and economic growth : evidence from SAARC member countries

Abstract

Purpose: The current paper revisiting empirical linkanges between trade openness and economic growth in the context of SAARC member countries while, utilized three measure of trade openness. Design/Methodology/Approach: Emperical analysis conducted by panel econometric approach. Findings: The main objective of the study is to revisit empirical linkages between trade openness and economic growth. It is found that trade openness and investment statistically significant and positively contribute to economic growth. Economic growth is multdimentional phenomanon, besides trade openness other determinants such as education and inflation negatively contridbute to economic growth . Practical Implications: The resarch is required for SAARC member countries to remove all those barriers of trade which retard economic growth and also to accelerate process of trade liberationation policy and pay attention to other determinants of growth in order to achieve desirable economic growth in the context of SAARC member countries. Originality/Value: Current study takes into account both conventional measure of trade openness and new measure of trade openness in the context of SAARC member countries.