The Dynamic Interactions Among Trade Openness and Economic Growth: Evidence from Algeria
The aim of this paper is to try to measure the impact of the trade openness on the economic growth in Algeria using the annual data for the period (1980¬-2015). In this intent, we considered three openness measures: the ratio of exports to GDP, the ratio of imports to GDP and the ratio of all the exports and the imports to GDP since that, the GDP per capita in real terms is used as an indicator of the economic growth. This analysis is based by the Fully Modified Ordinary Least Squares method said (FMOLS); The empirical results revealed the existence of long-term relationship between the real GDP per capita and Trade liberalization, and show that the trade openness has a significantly positive impact on the economic growth in Algeria, this result highlights that trade openness promote economic growth in Algeria.
The Dynamic Interactions Among Trade Openness and Economic Growth: Evidence from Algeria, International Journal of Economic Behavior and Organization.
Vol. 5, No. 6,
2017, pp. 162-167.
Ahmad, J.; Kwan, A. C. C. (1991), Causality between exports and economic growth: Empirical evidence from Africa, Economics Letters, Vol. 37, No. 3, pp. 243-248.
Ahmad J, Harnhirun S. (1995). Unit Roots and Cointegration in Estimating Causality between Exports and Economic Growth: Empirical Evidence from the ASEAN Countries. Economics Letters. 49, 329-334.
Awokuse, T. O. (2007), Causality between exports, imports, and economic growth: Evidence from transition economies, Economics Letters, Vol. 94, No. 3, pp. 389-395.
Balassa B. (1978). Exports and Economic Growth: Further Evidence. Journal of Development Economics. 5:2, 181-189.
Bahmani-Oskooee, M.; Mohtadi, H.; Shabsigh, G. (1991), Exports, growth and causality in LDCs: A re-examination, Journal of Development Economics, Vol. 36, No.2, pp. 405-415.
Banerjee, A.; Dolado, J. J.; Galbraith, J.; Hendry, D. F. (1993), Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data, Oxford University Press, Oxford.
Banerjee, A.; Dolado, J. J.; Mestre, R. (1998), Error-correction Mechanism Tests for Cointegration in a Single-equation Framework, Journal of Time Series Analysis, Vol. 19, No. 3, pp. 267 - 283.
Barro, R. J.; Lee, J. W. (1994), Sources of economic growth, Carnegie-Rochester Conference Series on Public Policy, Vol. 40, pp. 1-46.
Barro, R. J.; Sala-i-Martin, X. (1995), Economic Growth, McGraw-Hill, Cambridge, MA. Brazilian Journal of Business and Economics , Vol 3. No. 2, pp. 14-21.
Bhattacharya. M, Bhattacharya S. N.(2016). International Trade and Economic Growth: Evidences From The Brics. Journal of Applied Economics and Business Research JAEBR, 6 (2): 150-160.
Breitung, J. (2000), The local power of some unit root tests for panel data. Advances in Econometrics, Vol. 15: Nonstationary Panels, Panel Cointegration, and Dynamic Panels, ed. B. H. Baltagi, pp.161--178.
Chang, R.; Kaltani, L.; Loayza, N. (2009), Openness is Good for Growth: The Role of Policy Complementarities, Journal of Development Economics, Vol. 90, pp. 33-49.
Choi, I. (2001), Unit root tests for panel data, Journal of International Money and Finance, Vol. 20, No. 2, pp. 249-272.
Chow, P. (1987), Causality between exports growth and industrial development. Journal of Development Economics, Vol. 26, pp. 55--63.
Dickey, D. A.; Fuller, W. A. (1979), Distribution of the Estimators for Autoregressive Time Series With a Unit Root, Journal of the American Statistical Association, Vol. 74, No. 366, pp. 427-431.
Dodaro S. (1993). Exports and Growth: A Reconsideration of Causality. Journal of Developing Areas. 27, 227-244
Dollar, D. (1992), Outward-oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-85, Economic Development and Cultural Change, Vol. 40, No. 3, pp. 523-44.
Dollar, D.; Kraay, A. (2002), Growth is good for the poor. Journal of Economic Growth, Vol. 7, No. 3, pp. 195-- 225.
Dutt SD, Ghosh D. (1996). The Export Growth-Economic Growth Nexus: A Causality Analysis. The Journal of Developing Areas, 30:2, 167-182.
Easterly, W.; Levine, R. (2001), What have we learned from a decade of empirical research on growth? It's Not Factor Accumulation: Stylized Facts and Growth Models, World Bank Economic Review, Vol. 15, No. 2, pp 177-219.
Ekayanake EM. (1999). Exports and Economic Growth in Developing Countries: Cointegration and Error-Correction Models. Journal of Economic Development. 24:2, 43-56.
Edwards, S. (1998), Openness, Productivity, and Growth: What Do We Really Know?, Economic Journal, Vol.108 (447), pp. 383-98.
Feder, G. (1982). On Exports and Economic Growth. Journal of Development Eco¬nomics, 12, 59-73.
Grossman, G. M.; Helpman, E. (1991), Innovation and Growth in the Global Economy, Cambridge, MA: MIT Press.
Granger CWJ.(1988) Causality, Cointegration, and Control. Journal of Economic Dynamics and Control.12, 551-559.
Halit, Y. (2003), 'Trade Openness and Economic Growth a Cross-Country Empirical Investigation', Journal of Development Economics, Vol. 72, No. 1, October, 57– 89.
Hsiao MCW. (1987) Tests of Causality and Exogeneity between Exports and Economic Growth: The Case of Asian NICs. Journal of Economic Development. 12, 149-159.
Islam N. (1995). Growth Empirics: A Panel Data Approach. Quarterly Journal of Economics. 110, 1127–70.
Krugman, Paul R. (1986). Strategic trade policy and the new international economics. Cambridge, MA.: The MIT Press.
Lee, H. Y., Ricci, L. A. and Rigobon, R. (2004). Once Again, is Openness Good for Growth? Journal of Development Economics, 75, 451-472.
Love J, Chandra R. (2004) Testing Export-led Growth In India, Pakistan and Sri Lanka using a Multivariate Framework. The Manchester School. 72:4, 483-96.
Muhammad, S. (2012), 'Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan', Economic Modelling, Vol. 29, No. 06, November, 2325–2339.
McNab R, Moore R. (1998). Trade Policy, Export Expansion, Human Capital and Growth. Journal of International Trade & Economic Development. 7:2, 237-256.
Moosa IA. (1999). Is the Export Growth-led Hypothesis valid for Australia? Applied Economics. 31,903-906.
Paridaa PC, Sahoo P. (2007). Export-led growth in South Asia: A Panel Cointegration Analysis. International Economic Journal. 21:2, 155-175.
Pedroni, P. (1999). Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors. Oxford Bulletin of Economics and Statistics, 61, 653-670.
Pedroni, P. (2000). Fully Modified OLS for Heterogeneous Cointegrated Panels. Advances in Econometrics, 15, 93-130.
Pedroni, P. (2001). Purchasing Power Parity Tests in Cointegrated Panels. The Re¬view of Economics and Statistics, 83, 727-731.
Pedroni, P. (2004). Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP hypothesis. Econometric Theory, 20, 597-625.
Ram R. (1985) Exports and Economic Growth: Some additional evidence. Economic Development and Cultural Change. 33:2, 415-425.
Ram R. (1987). Exports and Economic Growth in Developing Countries: Evidence from TimeSeries and Cross-Section Data. Economic Development and Cultural Change. 36:1, 51- 72.
Rodriguez, F. and Rodrik, D. (2001). Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence”. In NBER (ed.), NBER Macroeconomics Annual 2000, NBER Chapters, (Cambridge: National Bureau of Economic Research), 261-338.
Salvatore D, Hatcher T. (1991). Inward Oriented and Outward Oriented Trade Strategies. Journal of Development Studies. 27:3, 7-25.
Riezman RG, Summers PM, Whiteman CH. (1996) The Engine of Growth or its Handmaiden? A Time Series Assessment of Export-led Growth. Empirical Economics. 21, 77-113.
Rivera-Batiz L, Romer P. (1991) International Trade with Endogenous Technological Change. European Economic Review. 35:4, 971-1004.
Safdari M, Mahmoodi M, Mahmoodi E. (2011) The Causality Relationship between Export and Economic Growth in Asian Developing Countries. American Journal of Scientific Research. 25, 40-45.
Sharma SC, Dhakal D. (1994). Causal Analysis between Exports and Economic Growth in Developing Countries. Applied Economics, 26, 1145-1157.
Ulaşan B. (2015). Trade Openness and Economic Growth: Panel Evidence. Applied Economics Letters. 22:2, 163-167.
Van den Berg H, Schmidt JR. (1994) Foreign Trade and Economic Growth: Time Series Evidence from Latin America. Journal of International Trade and Development. 3, 249-268.
Yao S.( 2006). On Economic Growth, FDI and Exports in China. Applied Economics. 38:3, 339-351.
Zeren F, Savrul BK. (2013). Revisited Export Led Growth Hypothesis for selected European Countries: A Panel Hidden Cointegration Approach. Istanbul University Econometrics and Statistics e-Journal. 18:1, 134-151.