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Effects of trade openness on inflation, income inequality and economic growth in selected developing countries

Trade openness is important to the national growth and development. However, its impact on inflation, income inequality and economic growth among developing countries remain inconclusive. Additionally, the use of different measurements for trade openness such as the standard trade shares (TS) mea...

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Main Author: Tee, Heng Guan
Format: Thesis
Language:English
Published: 2020
Subjects:
Free trade
Income - Effect of inflation on
Developing countries
Online Access:http://psasir.upm.edu.my/id/eprint/99380/1/TEE%20HENG%20GUAN%20-%20IR.pdf
http://psasir.upm.edu.my/id/eprint/99380/
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spelling my.upm.eprints.993802023-04-04T03:28:32Z http://psasir.upm.edu.my/id/eprint/99380/ Effects of trade openness on inflation, income inequality and economic growth in selected developing countries Tee, Heng Guan Trade openness is important to the national growth and development. However, its impact on inflation, income inequality and economic growth among developing countries remain inconclusive. Additionally, the use of different measurements for trade openness such as the standard trade shares (TS) measurement, world trade shares (WTS) and composite trade shares (CTS), a new measurement for trade openness also yields different results. The first research objective examines the relationship between trade openness and inflation on 51 developing countries from 1995 to 2018. This is motivated by the mixed relationships between trade openness and inflation among the developing countries. The finding based on system GMM estimation indicates a positive and significant relationship between CTS and inflation but not for TS and WTS. The second research objective focuses on the relationship between trade openness and income inequality on 52 developing countries from 1995 to 2015. This is motivated by the existence of mixed relationships between trade openness and income inequality among the developing countries. The second objective was estimated using system GMM estimation and there is a positive and significant relationship between trade openness and income inequality for both CTS and WTS but there is an insignificant relationship when TS is used. The third research objective examines the relationship between trade openness and economic growth on 57 developing countries from 1995 to 2018. As suggested by new growth theory, the relationship between trade openness and economic growth is positive, however, empirical findings were mixed among the developing countries. The finding based on system GMM estimation reveals a positive and significant relationship between trade openness and income inequality for both CTS and WTS but there is an insignificant relationship when TS is used. In conclusion, policies towards greater trade openness need to be handled with care to prevent further rise of inflation and income inequality. For income inequality, higher real GDP per capita is needed to reduce income inequality. For economic growth, both higher trade openness and physical capital are needed for continuous economic growth. 2020-06 Thesis NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/99380/1/TEE%20HENG%20GUAN%20-%20IR.pdf Tee, Heng Guan (2020) Effects of trade openness on inflation, income inequality and economic growth in selected developing countries. Doctoral thesis, Universiti Putra Malaysia. Free trade Income - Effect of inflation on Developing countries
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
topic Free trade
Income - Effect of inflation on
Developing countries
spellingShingle Free trade
Income - Effect of inflation on
Developing countries
Tee, Heng Guan
Effects of trade openness on inflation, income inequality and economic growth in selected developing countries
description Trade openness is important to the national growth and development. However, its impact on inflation, income inequality and economic growth among developing countries remain inconclusive. Additionally, the use of different measurements for trade openness such as the standard trade shares (TS) measurement, world trade shares (WTS) and composite trade shares (CTS), a new measurement for trade openness also yields different results. The first research objective examines the relationship between trade openness and inflation on 51 developing countries from 1995 to 2018. This is motivated by the mixed relationships between trade openness and inflation among the developing countries. The finding based on system GMM estimation indicates a positive and significant relationship between CTS and inflation but not for TS and WTS. The second research objective focuses on the relationship between trade openness and income inequality on 52 developing countries from 1995 to 2015. This is motivated by the existence of mixed relationships between trade openness and income inequality among the developing countries. The second objective was estimated using system GMM estimation and there is a positive and significant relationship between trade openness and income inequality for both CTS and WTS but there is an insignificant relationship when TS is used. The third research objective examines the relationship between trade openness and economic growth on 57 developing countries from 1995 to 2018. As suggested by new growth theory, the relationship between trade openness and economic growth is positive, however, empirical findings were mixed among the developing countries. The finding based on system GMM estimation reveals a positive and significant relationship between trade openness and income inequality for both CTS and WTS but there is an insignificant relationship when TS is used. In conclusion, policies towards greater trade openness need to be handled with care to prevent further rise of inflation and income inequality. For income inequality, higher real GDP per capita is needed to reduce income inequality. For economic growth, both higher trade openness and physical capital are needed for continuous economic growth.
format Thesis
author Tee, Heng Guan
author_facet Tee, Heng Guan
author_sort Tee, Heng Guan
title Effects of trade openness on inflation, income inequality and economic growth in selected developing countries
title_short Effects of trade openness on inflation, income inequality and economic growth in selected developing countries
title_full Effects of trade openness on inflation, income inequality and economic growth in selected developing countries
title_fullStr Effects of trade openness on inflation, income inequality and economic growth in selected developing countries
title_full_unstemmed Effects of trade openness on inflation, income inequality and economic growth in selected developing countries
title_sort effects of trade openness on inflation, income inequality and economic growth in selected developing countries
publishDate 2020
url http://psasir.upm.edu.my/id/eprint/99380/1/TEE%20HENG%20GUAN%20-%20IR.pdf
http://psasir.upm.edu.my/id/eprint/99380/
_version_ 1762394241241186304
score 13.211869

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