Trade liberalisation in developing countries over the last 20 years has often been implemented considering it as a pre-requisite to growth. In this context, this paper uses ARDL approach to co-integration to examine the relationships between growth and trade liberalisation in the context of India and Korea. The paper starts by discussing the debate over the growth-enhancing effect of trade liberalization. After that, the paper examines:
- the graphical and ordinary trend analysis of the behaviour of the trade openness indices and growth rates of the India and Korea
- the question whether the trends exhibited by the series are deterministic
- the question of whether there is any meaningful relationship between increased openness and growth
The author makes the following observations based on his analysis:
- both India and Korea opened up and consequently shares of trade (export, import and sum of the two) in their GDPs rose significantly (The rest omitted)
- Is there any impact of trade liberalisation on growth?
- Johnston, R. Barry; Darbar, Salim M.; Echeverria, Claudia
- Jadavpur University
Is there any impact of trade liberalisation on growth?
Experiences of India and Korea
|Series Title; No||IMF Working Paper / 97/157|
|Subject Country||India(Asia and Pacific)
South Korea(Asia and Pacific)
|Subject||Economy < Trade|