6th International Conference on Social Sciences, Humanities

and Technology 2021 (6th ICSHT 2021)

Sabah, Malaysia

TRADE OPENNESS AND ECONOMIC GROWTH

Khairunisah Kamsin*1
James Alin2
Mori Kogid3

Universiti Malaysia Sabah, UMS

  INTRODUCTION
PRESENTATION  PROBLEM STATEMENT
OUTLINE  SCOPE OF STUDY
 LITERATURE REVIEW
INTRODUCTION

EXPORT IMPORT

TRADE
OPENNESS
PROBLEM STATEMENT
 Why some countries grow faster while other is
slower( exploring the trade openness impact on
the economic performance.
 Even though there a lot of research about trade
openness and economic growth but the finding
still mix between positive and negative
relationship between trade openness and
economic growth.
 The mix previous finding show that this topic still
lake of a clear consensus on the relationship
between trade openness and economic
growth.
  Explaining better relationship between trade
openness and economic growth.

SIGNIFICANT  Policymakers to identify which indicators of

openness have the greatest influence on
OF STUDY growth.
SCOPE OF
STUDY
Developed Developing
Countries Countries
LITERATURE REVIEW Cont.
Positive Relationship
Trade Openness
• Makun (2017) economic openness positively affects real
output growth and have a significant effect on developing
countries.

• Keho (2017) in long run, trade openness has been found to Import
have a positive relationship with economic growth
• Sharma and Smyth (2009) in
• Gantman and Dabós (2017) trade openness has a positive the long run, there is a
impact on open and developing countries. causality relationship
between economic growth,
export and import
Export
• Vogiatzoglou and Nguyen (2016) export-led growth as a • Thangavelu and Rajaguru
major contributor to the economic growth in ASEAN 5. (2004) import has an
important link between
• Klastra (2011) found a long-run relationship between trade and economic growth
export and growth in specific ways
LITERATURE REVIEW Cont.

Negative Relationship

Ulasan (2015) trade openness alone does not impact economic growth.

Sarkar (2007) there is no long-run positive relationship between openness

and growth
RESEARCH GAP

Many existing studies stressed on the relationship between trade openness

and economic growth either using export or import as an indicator such
as and Rajaguru (2004) Vogiatzoglou and Nguyen (2016) Klastra (2011)
Sharma and Smyth (2009) , but there is not many studies examining the
impact of both of these indicators of trade openness toward economic
growth.

Filling The Gap

The present study relooks at trade openness in

terms of export and import and its impact on
economic growth
THANK YOU