A Sensitivity Analysis Regarding the Impacts of Trade Openness and Globalization Growth: Empirical Evidence from Korea
0
조회
0
다운로드
2
인용
0
참고문헌
키워드
초록
By using the annual time series data from 1986 to 2008 in South Korea (hereafter Korea) we will examine the possibility that the difference in trade liberalization is causal to the differentials in growth and measure the sensitivity of growth to changes in trade liberalization. For the estimation, we will use both alternative measures of trade liberalization; imports for the total factor cost of national income for trade openness (hereafter openness) and the sum of exports and imports for the total factor cost of national income for trade globalization (hereafter globalization). The regression results suggest that both openness and globalization make a substantial contribution towards Korea’s economic growth. In a comparison between these two indicators of trade liberalization, openness is more sensitive to growth. A negative and statistically significant error correction term implies that the null hypothesis of no co-integration is rejected when one period lag is used. The existence of co-integration means that openness and globalization policies can be targeted in order to bring about a desired long-run effect as well as a short run effect on growth.
Abstract
By using the annual time series data from 1986 to 2008 in South Korea (hereafter Korea) we will examine the possibility that the difference in trade liberalization is causal to the differentials in growth and measure the sensitivity of growth to changes in trade liberalization. For the estimation, we will use both alternative measures of trade liberalization; imports for the total factor cost of national income for trade openness (hereafter openness) and the sum of exports and imports for the total factor cost of national income for trade globalization (hereafter globalization). The regression results suggest that both openness and globalization make a substantial contribution towards Korea’s economic growth. In a comparison between these two indicators of trade liberalization, openness is more sensitive to growth. A negative and statistically significant error correction term implies that the null hypothesis of no co-integration is rejected when one period lag is used. The existence of co-integration means that openness and globalization policies can be targeted in order to bring about a desired long-run effect as well as a short run effect on growth.
참고문헌 (25)
- Corruption, Structural Reforms, and Economic Performance in the Transition Economies, "Abed, G. T.", International Monetary Fund, ~, pp.IMF Working Paper No.WP (2000), 00[DOI]
- Ansari, M. I., "Does Money Matter? Evidence from Vector Error-Correction for Mexico", Journal of Developing Areas, 41(1), pp.185~202 (2007)
- Awokuse, T. O., "Trade Openness and Economic Growth: Is Growth Export-led or Import-led?", Applied Economics, 40(2), pp.161~173 (2008)
- Balassa, B., "Exports and Economic Growth : Further Evidence", Journal of Development Economics, 5(2), pp.181~189 (1978)
- Bardhan, P., "Corruption and Development: A Review of Issues", Journal of Economic Literature, 35(3), pp.1320~1346 (1997)
- Barro, R. J., "Economic Growth" (2001), MIT Press
- Black, B., "Does Corporate Governance Matter? A Crude Test Using Russian Data", University of Pennsylvania Law Review, 149(6), pp.2131~2150 (2001)
- Bloom, D. E., "The Effect of Health on Economic Growth: A Production Function Approach", World Development, 32(1), pp.1~13 (2004)
- Edwards, S., "Openness, Productivity and Growth: What Do We Really Know?", The Economic Journal, 108(447), pp.383~398 (1998)
- Frankel, J., "Does Trade Cause Growth", American Economic Review, 89(3), pp.379~399 (1999)
- Greenaway, D., "Industrializationand Macro economic Performance in Developing Countriesunder Alternative Trade Strategies", KYKLOS, 41(3), pp.419~435 (1988)
- Grossman, P. J., "Government and Economic Growth: A Non-linear Relationship", Public Choice, 56(2), pp.193~200 (1988)
- Gwartney, J. D., "Institutions and the Impact of Investment on Growth", KYKLOS, 59(2), pp.255~273 (2006)
- Rebalancing Growth in the Republic of Korea, "Ha, J. K.", ADBI, ~, pp.Working Paper Series No. 224 (2010)
- Hall, R. E., "Why Do Some Countries Produce So Much More Output per Worker than Others?", Quarterly Journal of Economics, 114(1), pp.83~116 (1999)
- Haavelmo, T., "A Study in the Theory of Investment" (1960), UniversityofChicagoPress
- Higgs, R., "Depression, War, and Cold War: Challenging the Myths of Conflict and Prosperity" (2010), The Independent Institute
- Jorgenson, D. W., "Information Technology and the World Economy", The Scandinavian Journal of Economics, 107(4), pp.631~650 (2005)
- Maddala, G. S., "Econometrics" (1977), McGraw-Hill, Inc
- Maddala, G. S., "Introduction to Econometrics" (1992), MacmillanPublishingCompany
- Rogers, M., "A Survey of Economic Growth", Economic Record, 79(244), pp.112~135 (2003)
- Stel, A. V., "The Effect of Entrepreneurial Activity on National Economic Growth", Small Business Economics, 24(3), pp.311~321 (2005)
- Wooldridge, J. M., "Introductory Econometrics: A Modern Approach" (2000), South-Western College Publishing
- Yanikkaya, H., "Trade Openness and Economic Growth: A Cross-Country Empirical Investigation", Journal of Development Economics, 72(1), pp.57~89 (2003)
- Yucel, F., "Causal Relationships between Financial Development, Trade Openness and Economic Growth: The Case of Turkey", Journal of Social Sciences, 5(1), pp.33~42 (2009)