Dynamic estimation of the Relationship between Trade Openness and Economic Growth in Singapore

MASOUD ALI KHALID; HAWZHEN KHASRW AHMAD

doi:10.25098/1.1.3

Authors

MASOUD ALI KHALID College of Administrative and Financial science - Department of Accounting by IT. Cihan University/ Sulaimani- Kurdistan Region Government/Iraq
HAWZHEN KHASRW AHMAD University of Sulaimany- College of Administration and Economics. Department of Economics- Kurdistan Region Government/Iraq

DOI:

https://doi.org/10.25098/1.1.3

Keywords:

Economic growth, Trade, ARDL, model and Singapore

Abstract

This paper studies the relationship between trade openness and output growth for Singapore, using ARDL model. The findings for ARDL model of this study provide empirical evidence and indicating that higher revealed trade openness is the main engine explaining the Singapore economic-growth. In particular, our investigation finds that long run relationship among the variables such as capital formation; exports, imports and international trade have positive impact on economic growth. Furthermore, the results for Granger causality test indicates that there is a unidirectional relationship running from GDP per capita to trade (Export + Import). This is shows that GDP is very important to the trade sector in Singapore.

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