scholarly journals Causality Relationship Between Government Stability and Trade Openness: The Case of Turkey

2021 ◽  
pp. 422-431
Author(s):  
Yilmaz Onur ARİ
Keyword(s):  
Trade Openness ◽  
Government Stability ◽  
Causality Relationship

scholarly journals Granger Causality Analysi̇s of Forei̇gn Trade İmpact on Economi̇c Growth and Some Socioeconomic Indicators: Case of Azerbaijan

2021 ◽  
Vol 18 ◽  
pp. 276-283
Author(s):  
Gulaliyev G. Mayis ◽  
Bayramov V. Shahin ◽  
Guliyeva T. Shafa ◽  
Alikhanli J. Yegana ◽  
Orujova S. Mehpare
Keyword(s):  
Foreign Trade ◽  
Granger Causality ◽  
Household Income ◽  
Trade Openness ◽  
Poverty Rate ◽  
Socioeconomic Indicators ◽  
Macroeconomic Indicators ◽  
Causality Tests ◽  
Causality Relationship ◽  
The Impact

The main purpose of the investigation is to define the existence of the causality relationship between foreign trade and some macroeconomic indicators in Azerbaijan. There was used OLS and cointegration methods, as well as Granger causality between these indicators. The main conclusion is that there is not a causality effect between import and GDP. As well as there is a causality effect between GDP and export. But there is not a strong causality effect between foreign trade openness, foreign trade freedom, and GDP. As well as the paper investigates the impact of import, export, and their annual changing on household income. For this purpose, the Dickey-Fuller test and Granger causality tests were applied. The authors come to the conclusion that there is no causal relationship between foreign trade indicators and poverty rate, but there is such a relationship between foreign trade indicators and household income.

scholarly journals FOREIGN DIRECT INVESTMENTS, TRADE OPENNESS AND CO2 EMISSIONS RELATIONSHIP: THE CASE OF 1995-2019 EU COUNTRIES

2021 ◽  
Vol 33 (2) ◽  
pp. 56-73
Author(s):  
Ahmet Kamaci ◽  
Ekrem Gul ◽  
Mustafa Torusdag
Keyword(s):  
World Economy ◽  
Carbon Emission ◽  
Trade Openness ◽  
Foreign Direct Investments ◽  
Negative Effects ◽  
Cross Sectional ◽  
Eu Countries ◽  
Causality Tests ◽  
Causality Relationship ◽  
The Relationship

Foreign direct investments (FDI), which are very important in the economic development of countries, prefer regions with free trade. Since the share of international trade in the world economy is constantly increasing, trade openness and foreign direct investments have become more important for countries. However, the increase in trade and FDI entries can have negative effects on the environment. Although many different variables are included in the literature as determinants of carbon emission, foreign direct investments are mostly taken as an explanatory variable with the effect of the economic globalization process.  The aim of this paper is to analyze the relationship between FDI, trade openness and CO2 emission for the 1995-2019 period in 24 EU countries. The relationship between variables was estimated by applying panel AMG estimator and Emirmahmutoglu and Kose causality tests to series with cross-sectional dependency. Empirical results for the overall panel show that there is unidirectional causality from carbon emission to trade openness and FDI. There is a directional causality from FDI to trade openness for the general panel has been determined.      When analyzed on a country basis, there is unidirectional causality from carbon emission to trade openness for Bulgaria, Italy, Latvia, Poland, Portugal and Slovenia. Likewise, for Austria, Denmark, Estonia, Finland, France, Germany, Poland, Portugal, Spain and Switzerland, there is unidirectional causality from carbon emission to FDI. In addition, when analyzed on a country basis, there is a one-way causality relationship from foreign direct investments to trade openness for Bulgaria, Italia, Latvia, Poland, Portugal and Slovenia. For Bulgaria, Finland and Germany, there is a one-way causality from trade openness to foreign direct investment.  The importance of this study derives from the emphasis on the need for environmentally protective FDIs to reduce carbon emissions.

scholarly journals Trade openness, institutions and economic growth in Sub-Saharan Africa

2021 ◽  
Vol 8 (6) ◽  
pp. 541-560
Author(s):  
Taiwo AKINLO ◽  
Charles Olalekan OKUNLOLA
Keyword(s):  
Economic Growth ◽  
Interactive Effect ◽  
Trade Openness ◽  
Institutional Quality ◽  
Sub Saharan Africa ◽  
Law And Order ◽  
African Countries ◽  
Nonlinear Growth ◽  
Government Stability ◽  
Sub Saharan

This research investigates the interactive effect of trade openness and the institutional quality on economic growth in sub-Sahara Africa. The sample consists of 38 sub-Saharan African countries and covers the period 1986-2015. Pooled OLS, fixed effect, and Dynamic GMM were used as estimation techniques. The empirical section used a nonlinear growth regression specification that interacts trade openness with law and order, bureaucratic quality, corruption, government stability, and democratic accountability. The study found that corruption, government stability, law and order, and bureaucratic quality as institutional quality variables harm economic growth. The interaction of trade openness and institutional quality variables positively impacted economic growth. It is an indication that trade openness better impacted economic growth in the presence of high-quality institutional variables.

scholarly journals Granger Causality Analysis of Foreign Trade Impact on Economic Growth: Case of Azerbaijan

2020 ◽  
Vol 16 ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Trade ◽  
Trade Openness ◽  
Gdp Growth ◽  
Causality Analysis ◽  
Granger Causality Analysis ◽  
Strong Causality ◽  
Macroeconomic Indicators ◽  
Causality Relationship ◽  
Foreign Trade Activity

Main purpose of the investigation is to define existing of causality relationship between foreign trade activity of Azerbaijan and economic growth. There were used OLS method and cointegration between some macroeconomic indicators. Main conclusion is that there is not causality effect between import and GDP, but GDP growth is cause for changing import for lag=3. As well as there is causality effect between GDP growth and export. But there is not strong causality effect between foreign trade openness, foreign trade freedom and economic growth.

scholarly journals Trade openness and FDI in Zimbabwe: What does data tell us?

2015 ◽  
Vol 12 (4) ◽  
pp. 303-311 ◽  
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Causal Relation ◽  
Trade Openness ◽  
Trade Policies ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Study Find ◽  
Long Run ◽  
Causality Relationship ◽  
Bounds Testing Approach

The study focus on the causal relation between trade openness and foreign direct investment (FDI) in Zimbabwe. The choice for the country came about due to the consideration that such an area on trade openness and FDI has not been adequately covered in Zimbabwe. In the absence of consensus in the literature about the causal relation between trade openness and FDI, it has been found not to be easy to formulate effective FDI and international trade policies. Scores of researchers have failed to agree on the causality relationship between trade openness and FDI. Some have said trade openness boost FDI inflow while other researchers, though few are of the opinion that it is FDI that accelerates trade openness of the host country. On the other hand, some authors maintain that both FDI and trade openness affect each other whilst others says no relationship exist between the two variables. Using the ARDL (Autoregressive distributed lag)-bounds testing approach, this study find that there is no long run relationship between FDI and trade openness in Zimbabwe.

The Political Economy of Trade Openness Reform: Consequences of Reform for Russian Border Regions

2011 ◽  
pp. 118-138
Author(s):  
N. Ryzhova
Keyword(s):  
Political Economy ◽  
International Trade ◽  
Trade Openness ◽  
Income Redistribution ◽  
The Political ◽  
Trade Reform ◽  
Border Regions

The article deals with the incentives for increasing international trade centralization and restricting trade border regions openness in reformed economy. Two groups of incentives are determined in terms of new political economy approaches: fear of separatism and reluctance of income redistribution. The situation with the radical international trade reform in Russia, followed by correction of trade openness, illustrates key moments in the concepts.

Economic Growth and Macro Variables in India: An Empirical Study

2015 ◽  
pp. 42-59
Author(s):  
Saba Ismail ◽  
Shahid Ahmed
Keyword(s):  
Economic Growth ◽  
Growth Rates ◽  
Trade Openness ◽  
Capital Formation ◽  
Gdp Growth ◽  
Fdi Inflows ◽  
Domestic Capital ◽  
The Government ◽  
Macro Variables ◽  
Determinants Of Economic Growth

The research objective of this paper is to explore the empirical linkages between economic growth and foreign direct investment (FDI), gross fixed capital formation (GFCF) and trade openness in India (TOP) over the period 1980 to 2013. The study reveals a positive relationship between economic growth and FDI, GFCF and TOP. This study establishes a strong unidirectional causal flow from changes in FDI, trade openness and capital formation to the economic growth rates of India. The impulse response function traces the positive influence of these macro variables on the GDP growth rates of India. The study also reveals that the volatility of GDP growth rates in India is mainly attributed to the variation in the level of GFCF and FDI. The study concludes that the FDI inflows and the size of capital formation are the main determinants of economic growth. In view of this, it is expected that the government of India should provide more policy focus on promoting FDI inflows and domestic capital formations to increase its economic growth in the long-term.

The relationship between output growth and unemployment in the Philippines economy (1990-2014):

2017 ◽  
Vol 5 (1) ◽  
pp. 49
Author(s):  
Marlon A. Mojica ◽  
Virgilio M. Tatlonghari
Keyword(s):  
Labor Force ◽  
Structural Break ◽  
Empirical Relationship ◽  
Trade Openness ◽  
Negative Relationship ◽  
Participation Rate ◽  
The Philippines ◽  
Output Growth ◽  
Recursive Least Squares ◽  
Parameter Instability

This paper examines the empirical relationship between unemployment and real output in the Philippines utilizing quarterly data from the Labor Force Survey by the Philippine Statistics Authority for the period from 1990-2014. The study employed three variants of Okun’s Law – the “gap” approach, the “first difference” approach, and a dynamic approach.   Findings show that the Okun’s coefficients based on the gap approach are consistent with the theoretical expectation of a negative relationship.  In the ARDL model, labor force participation rate and trade openness were found to be significantly related to unemployment. The result of dummy variable test revealed the presence of structural break following the re-definition of unemployment in the Philippines in 2005. Recursive least squares and rolling regressions show evidence of parameter instability in several sub-periods.

HUBUNGAN ANTARA CONSUMPTION ABROAD (MODA 2) DENGAN COMMERCIAL PRESENCE (MODA 3) DI SEKTOR JASA PARIWISATA INDONESIA

2016 ◽  
Vol 10 (1) ◽  
pp. 45-62
Author(s):  
Muhammad Fawaiq
Keyword(s):  
Vector Error Correction Model ◽  
Short Term ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Mode 2 ◽  
Variable Mode ◽  
Causality Relationship ◽  
Mode 3

Penelitian ini bertujuan untuk menganalisis hubungan antara Moda 2 dan Moda 3 dalam perdagangan internasional di sektor jasa pariwisata. Metode penelitian yang digunakan dalam penelitian ini adalah Panel Vector Error Correction Model (VECM) Granger. Data yang digunakan adalah data kedatangan wisatawan mancanegara dan Foreign Direct Investment (FDI) jasa hotel dan restoran tahun 1997-2014 di Bali, Jakarta, Kepulauan Riau dan Sumatera Utara. Daerah-daerah ini berkontribusi sebesar 81,26% dari total kedatangan wisatawan mancanegara di Indonesia dan 68% terhadap total FDI di jasa hotel dan restoran Indonesia. Hasil penelitian menunjukkan bahwa tidak terdapat hubungan kausalitas jangka pendek antara kedua variabel tetapi terdapat hubungan jangka panjang satu arah yaitu variabel Moda 3 dipengaruhi oleh variabel Moda 2. Hasil pengujian pada gabungan antara jangka panjang dan jangka pendek menujukkan bahwa variabel Moda 3 secara kuat dipengaruhi oleh variabel Moda 2. Dengan demikian diketahui bahwa semakin banyak jumlah wisatawan mancanegara yang datang ke Indonesia maka akan mendorong meningkatnya FDI di jasa hotel dan restoran, tetapi meningkatnya FDI di jasa tersebut tidak signifikan berpengaruh terhadap masuknya jumlah wisatawan mancanegara. This paper examines the relationship between Mode 2 and Mode 3 of international trade in tourism sector. The method used is the Panel Vector Error Correction Model (VECM) Granger. The data used in this study were the number of foreign tourist arrivals and the Foreign Direct Investment (FDI) in some hotels and restaurants during 1997-2014 in Bali, Jakarta, Riau Islands and Nort Sumatera.These regions contributed for 81.26% out of the total tourist arrivals in Indonesia and 68% of the total FDI in the services of hotels and restaurants Indonesia. The results using VECM Granger demonstrated that there was no short-term causality relationship between these two variables but they had a long-term causality relationship that the Moda 3 was affected by the variable mode 2. Test results on a combination of long-term and short-term showed that the variable mode 3 was strongly influenced by variable mode 2. Thus, it is known that the more foreign tourists coming to Indonesia, the more FDI we gained from the service of hotels and restaurants, but this increase does not significantly affect the number of foreign tourists.

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