Revisit the Nexus between Trade Openness and Economic Growth

DOI

10.2991/978-94-6463-690-1_37How to use a DOI?

Keywords

International trade; economic growth; macroeconomics; empirical studies

Abstract

This study examines the complex relationship between trade openness and economic growth using a two-way fixed effects model on panel data from 153 countries from 2001 to 2021. Our findings challenge the conventional wisdom that trade openness universally promotes growth. We demonstrate that while trade volume positively correlates with economic growth, trade barriers also show a positive association. Moreover, trade barriers amplify the positive relationship between trade volumes and growth. These results suggest that countries should reconsider blanket trade liberalization policies and instead adopt nuanced approaches that balance openness with protective measures.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zitao Liu
PY  - 2025
DA  - 2025/04/23
TI  - Revisit the Nexus between Trade Openness and Economic Growth
BT  - Proceedings of the 2024 6th International Conference on Economic Management and Model Engineering (ICEMME 2024)
PB  - Atlantis Press
SP  - 377
EP  - 390
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-690-1_37
DO  - 10.2991/978-94-6463-690-1_37
ID  - Liu2025
ER  -