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The Relationship Between Trade Openness and Economic Growth in Muslim Countries: An Empirical Investigation

Received: 10 May 2016    Accepted:     Published: 11 May 2016
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Abstract

This paper studies the association between openness and growth for selected Muslim countries. The rational for conducting this study only on Muslim countries is to explore this relationship among economies having different religion, economic and social characteristics. This paper employed random and fixed effect model (RE & FE). Also, Pedroni and Kao Cointegration test is used to explore the long run relationship between openness and growth. The finding from Pedroni Cointegration test has indicated the long run relationship among variables. However, this long run relationship is absent in Kao Cointegration test. The results of RE and FE model have shown that openness has significant and positive effect on growth. In addition, foreign direct investment, inflation and human capital are also affecting growth in Muslim countries.

DOI 10.11648/j.eco.20160502.11
Published in Economics (Volume 5, Issue 2, April 2016)
Page(s) 15-19
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Economic Growth, Muslim Countries, Trade Openness, Cointegration, Random Effect, Fixed Effect

References
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Author Information
  • School of International Trade and Economics, Jiangxi University of Finance and Economics, Nanchang, China

  • School of Industrial Economics, Jiangxi University of Finance and Economics, Nanchang, China

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  • APA Style

    Faqeer Muhammad, Ze Jian. (2016). The Relationship Between Trade Openness and Economic Growth in Muslim Countries: An Empirical Investigation. Economics, 5(2), 15-19. https://doi.org/10.11648/j.eco.20160502.11

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    ACS Style

    Faqeer Muhammad; Ze Jian. The Relationship Between Trade Openness and Economic Growth in Muslim Countries: An Empirical Investigation. Economics. 2016, 5(2), 15-19. doi: 10.11648/j.eco.20160502.11

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    AMA Style

    Faqeer Muhammad, Ze Jian. The Relationship Between Trade Openness and Economic Growth in Muslim Countries: An Empirical Investigation. Economics. 2016;5(2):15-19. doi: 10.11648/j.eco.20160502.11

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  • @article{10.11648/j.eco.20160502.11,
      author = {Faqeer Muhammad and Ze Jian},
      title = {The Relationship Between Trade Openness and Economic Growth in Muslim Countries: An Empirical Investigation},
      journal = {Economics},
      volume = {5},
      number = {2},
      pages = {15-19},
      doi = {10.11648/j.eco.20160502.11},
      url = {https://doi.org/10.11648/j.eco.20160502.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.eco.20160502.11},
      abstract = {This paper studies the association between openness and growth for selected Muslim countries. The rational for conducting this study only on Muslim countries is to explore this relationship among economies having different religion, economic and social characteristics. This paper employed random and fixed effect model (RE & FE). Also, Pedroni and Kao Cointegration test is used to explore the long run relationship between openness and growth. The finding from Pedroni Cointegration test has indicated the long run relationship among variables. However, this long run relationship is absent in Kao Cointegration test. The results of RE and FE model have shown that openness has significant and positive effect on growth. In addition, foreign direct investment, inflation and human capital are also affecting growth in Muslim countries.},
     year = {2016}
    }
    

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    T1  - The Relationship Between Trade Openness and Economic Growth in Muslim Countries: An Empirical Investigation
    AU  - Faqeer Muhammad
    AU  - Ze Jian
    Y1  - 2016/05/11
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    DO  - 10.11648/j.eco.20160502.11
    T2  - Economics
    JF  - Economics
    JO  - Economics
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    SN  - 2376-6603
    UR  - https://doi.org/10.11648/j.eco.20160502.11
    AB  - This paper studies the association between openness and growth for selected Muslim countries. The rational for conducting this study only on Muslim countries is to explore this relationship among economies having different religion, economic and social characteristics. This paper employed random and fixed effect model (RE & FE). Also, Pedroni and Kao Cointegration test is used to explore the long run relationship between openness and growth. The finding from Pedroni Cointegration test has indicated the long run relationship among variables. However, this long run relationship is absent in Kao Cointegration test. The results of RE and FE model have shown that openness has significant and positive effect on growth. In addition, foreign direct investment, inflation and human capital are also affecting growth in Muslim countries.
    VL  - 5
    IS  - 2
    ER  - 

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