Artikel
Trade openness, income, and role of institutions: A revisit using heterogeneous panel data models
The positive association between trade openness and income has been debated over years due to serious estimation flaws prevailing in the cross-country empirical trade literature. The present paper contributes to this debate by re-examining the long-run relationship between trade openness and income per capita focusing on role of institutions. It does so by estimating a heterogeneous panel data model with 97 countries over the period 1980-2012 taking unobserved common factors into consideration. Our method is a more appropriate approach to estimate this relationship given the potential cross-section dependence and parameter heterogeneity associated with cross-country growth regressions. The results have found evidence to suggest that trade openness is positively and significantly associated with income per capita even after controlling for parameter heterogeneity, cross-section dependence and possible endogeneity. Results further suggest that better quality institutions complement the effects on income underscoring the significance of institutions in benefiting more from trade openness. This study provides more reliable estimates to support the claim that trade openness has significant and robust role on economic growth and development.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 3 ; Year: 2015 ; Issue: 1 ; Pages: 1-9 ; Abingdon: Taylor & Francis
- Klassifikation
-
Wirtschaft
Economic Growth of Open Economies
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
- Thema
-
common factor models
cross-section dependence
international trade
economic growth of open economies
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Thennakoon, Jayanthi
Dissanayake, Jagath
- Ereignis
-
Veröffentlichung
- (wer)
-
Taylor & Francis
- (wo)
-
Abingdon
- (wann)
-
2015
- DOI
-
doi:10.1080/23322039.2015.1020031
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Thennakoon, Jayanthi
- Dissanayake, Jagath
- Taylor & Francis
Entstanden
- 2015
Ähnliche Objekte (12)
Human capital, trade openness and CO2 emissions: Evidence from heterogeneous income groups
Cryptocurrency regulations: Institutions and financial openness
Unions and income inequality: A heterogeneous panel cointegration and causality analysis
Income Distribution, Factor Endowments, and Trade Openness
Trade Openness and Cross-country Income Differences
Trade openness and income - a re-examination
The heterogeneous relationship between income and inequality: a panel co-integration approach
Dynamic Heterogeneous Distribution Regression Panel Models, with an Application to Labor Income Processes
Dynamic heterogeneous distribution regression panel models, with an application to labor income processes
Trade openness and income inequality: New empirical evidence
Trade Openness and Income Inequality: New Empirical Evidence
Trade openness and income inequality: New empirical evidence
Human capital, trade openness and CO2 emissions: Evidence from heterogeneous income groups
Cryptocurrency regulations: Institutions and financial openness
Unions and income inequality: A heterogeneous panel cointegration and causality analysis
Income Distribution, Factor Endowments, and Trade Openness
Trade Openness and Cross-country Income Differences
Trade openness and income - a re-examination
The heterogeneous relationship between income and inequality: a panel co-integration approach
Dynamic Heterogeneous Distribution Regression Panel Models, with an Application to Labor Income Processes
Dynamic heterogeneous distribution regression panel models, with an application to labor income processes
Trade openness and income inequality: New empirical evidence
Trade Openness and Income Inequality: New Empirical Evidence
Trade openness and income inequality: New empirical evidence
Human capital, trade openness and CO2 emissions: Evidence from heterogeneous income groups
Cryptocurrency regulations: Institutions and financial openness
Unions and income inequality: A heterogeneous panel cointegration and causality analysis
Income Distribution, Factor Endowments, and Trade Openness
Trade Openness and Cross-country Income Differences
Trade openness and income - a re-examination
The heterogeneous relationship between income and inequality: a panel co-integration approach
Dynamic Heterogeneous Distribution Regression Panel Models, with an Application to Labor Income Processes
Dynamic heterogeneous distribution regression panel models, with an application to labor income processes
Trade openness and income inequality: New empirical evidence
Trade Openness and Income Inequality: New Empirical Evidence