The role of trade flows in the modern economy has been brought to a focal point by the increased trade frictions, geopolitical tensions, countries exiting unions, pressures of global financial crises and the recent covid-19 pandemic. We, therefore, set out to examine the relationship between trade openness and economic growth among 31 advanced OECD countries between the period 2000 - 2018. Using a panel data analysis and utilizing a linear regression model with fixed effects, our findings show that trade openness has a positive and significant impact on economic growth. Our policy recommendation is that given a chosen level of economic integration, increasing investments can better leverage trade openness as a tool to enhance growth.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:sh-45688 |
| Date | January 2021 |
| Creators | Cheung, Joel, Ljungqvist, Zerina |
| Publisher | Södertörns högskola, Nationalekonomi, Södertörns högskola, Nationalekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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