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Does international trade promote economic growth? An evidence from Brunei Darussalam
Journal of Chinese Economic and Foreign Trade Studies Pub Date : 2020-09-21 , DOI: 10.1108/jcefts-03-2020-0010
Muhammad Tahir , Arshad Hayat

Purpose – The purpose of this paper is to explore the potential impact of trade openness on economic growth for the economy of Brunei Darussalam. Design/methodology/approach - Empirical analyses are conducted using the Autoregressive Distributed Lagged Model (ARDL) procedure and the data utilized were spanning from 1989 to 2018. Findings - The obtained results indicated a positive and statistically significant relationship between trade openness and economic growth. Similarly, the results also revealed that domestic investment and natural resources positively impacted economic growth. Further, we found that human capital has impacted economic growth both negatively and significantly, which is against our prior expectations. Moreover, in the short run, trade openness and domestic investment have lost its significance level while all other variables have maintained both their significance levels and signs of their coefficients. Practical implications – This paper has provided comprehensive evidence regarding the relationship between trade openness and economic growth for Brunei Darussalam. Therefore, the policymakers of Brunei are suggested to take practical steps to gear up to trade liberalization and hence attain higher growth. Further, favorable attention is also needed for economic diversification and encouraging domestic investment to accelerate the long-run economic growth. Originality/value - As this is a comprehensive study on the economy of Brunei Darussalam, therefore, we expect that the policymakers would find it useful while formulating and exercising suitable policies related to trade openness.

中文翻译:

国际贸易会促进经济增长吗?文莱达鲁萨兰国的证据

目的–本文的目的是探讨贸易开放对文莱达鲁萨兰国经济对经济增长的潜在影响。设计/方法/方法-使用自回归分布式滞后模型(ARDL)程序进行实证分析,使用的数据跨度为1989年至2018年。结果-获得的结果表明贸易开放度与经济增长之间存在正向和统计上的显着关系。同样,结果还表明,国内投资和自然资源对经济增长产生了积极影响。此外,我们发现人力资本对经济增长产生了负面和重大影响,这与我们先前的预期背道而驰。而且,在短期内,贸易开放度和国内投资已失去其显着性水平,而所有其他变量都保持了其显着性水平和系数的符号。实际意义–本文为文莱达鲁萨兰国的贸易开放度与经济增长之间的关系提供了全面的证据。因此,建议文莱决策者采取实际步骤,以加快贸易自由化,从而实现更高的增长。此外,还需要对经济多样化和鼓励国内投资以促进长期经济增长给予积极关注。原创性/价值-由于这是对文莱达鲁萨兰国经济的全面研究,因此,
更新日期:2020-09-21
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