Comparative Evaluation of Impact of Out-ward Oriented and In-ward Oriented Trade Policy on Economic Growth Rate

Document Type : Research article

Authors

Mihandokht Kazemi

Mostafa salimifar

Saeede Sabze

https://doi.org/10.22067/erd.v18i2.13735

Abstract

Abstract
This article seeks to investigate the effect of trading policies on economic growth in number of developing countries via comparison of in-ward and out-ward oriented trade policies effects. To achieve this, a pooling data analysis, panel data regression and fixed effect module were applied to justify the fact that trade liberalization has a positive impact on economic growth rate in mentioned countries and trade restriction will slow down the race of economic growth.
This comparison was carried out through countries classified into two major groups of in-ward and out-wards oriented trade policies and following four subgroups:
1. countries with trade policy quite out-ward oriented,
2. countries with trade policy moderately out-ward oriented,
3. The policy states moderately in-ward oriented and eventually
4. Countries with completely in-ward oriented trade policy.
The results vividly demonstrate the countries with out-ward oriented policy have developed better than the countries with in-ward oriented policy. On the other hand, among the countries with out-ward oriented trade policy, those that have adopted moderately out-ward oriented trade policy have experienced better results.

Keywords: Out-ward Oriented Trade Policy, In-ward Oriented Trade Policy, Economic Growth, Pooling Data, Panel Data Regression.

JEL: D43, F12, L13.

Keywords

Out-ward Oriented Trade Policy

In-ward Oriented Trade Policy

Economic Growth

Pooling Data

Panel Data Regression

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