Trade liberalization, openness and economic growth: A panel time series analysis for the global economy

Bilgin , Cevat
Şeker, Ayberk
As countries join international economic system through trade, it is expected to be beneficial to developments of economies all over the world. Accordingly, the conventional opinions assert that the globalization process accelerates the economic development of countries as they liberalize their external trades and integrate their markets to global market. Yet, there have been important objections to this argument coming from theory and empirical analyses. Therefore, it becomes important to evaluate the relation between trade openness and GDP per capita. This paper analyzes the relationship between GDP per capita and trade openness for 83 countries exposed to the globalization process by imposing panel time series methods for the 1960–2018 period. The main conclusion of the paper is that the globalization experience for the developing countries is not as beneficial as for the developed countries. The positive effect of trade openness on economic growth for the developing countries weakens seriously when they aggressively impose trade liberalization policies. Furthermore, this relation disappears for the less developed countries during the liberal times.


Trade liberalization and innovation decisions of firms: Lessons from Post-1980 Turkey
Pamukcu, Mehmet Teoman (2003-01-01)
Determinants of innovation decisions of Turkish manufacturing firms are estimated for 1989-93, with an emphasis on determinants that are linked to trade policy reforms of the 1980s. Using plant-level data, we find that positive effects of trade liberalization on innovation decision are transmitted mainly through technology embodied in imported machinery. Being a technology licensee, an exporter, or having a foreign partner does not exert a significant positive effect on a firm's probability to innovate, nor...
Pricing default and financial distress risks in foreign currency-denominated corporate loans in Turkey
Yılmaz, Aycan; Erol, Işıl; Department of Financial Mathematics (2011)
The globalization leads to integration of the economies worldwide. As the firms' businesses also get integrated with each other, the financing choices of the firms diversify. Among these choices, the popularity and the share of foreign currency borrowing in total borrowing by non-financial firms increase in Turkey similar to the global developments. The main purpose of this thesis is to price the risks of default and financial distress due to foreign currency denominated loans of non-financial firms in Turk...
External financial liberalization in developing countries: some adverse consequences
Boratav, Korkut (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 1993)
Liberalization of capital movements under a high inflation regime in a developing country would most likely lead to an uncontrolled growth of the external growth of the external debt. Adverse consequences on either the rate of investment or on the trade balance are likely to follow as well. These results are valid as long as developing countries face higher rates of inflation and larger margins between loan and deposit interest rates than those observed in capitalist metropoles. Under these conditions, exch...
Exchange Rate Regimes and Business Cycles: An Empirical Investigation
Erdem, Fatma Pinar; Özmen, Erdal (2015-11-01)
This paper empirically investigates the impacts of domestic and external factors along with exchange rate regimes (ERRs) on business cycles in a large panel of advanced and emerging market economies (EME). The results for classical business cycles suggest that EME tend to experience much deeper recessions and relatively steeper expansions during almost the same duration. The probability of expansions significantly increases with ERR flexibility. Our results strongly support floating ERR for both advanced an...
An urban renewal story in Ankara metropolitan area : case study Cevizlidere
Doyduk, Uğraş; Şenyapılı, Tansı; Department of Architecture (2008)
Globalization has created a theoretically supra-national, borderless world which encompasses a combination of urban economies and societies, displacing them from localities through mobilization of labor and capital based on strong telecommunicational network relations. The dimensions of global-local relationship is defined in diversification at each level of globalization, creating heterogeneous,global-local relations expressed through the new concept of governance which involves concepts of rule of law, tr...
Citation Formats
C. Bilgin and A. Şeker, “Trade liberalization, openness and economic growth: A panel time series analysis for the global economy,” ODTÜ Gelişme Dergisi, vol. 48, no. 1, pp. 31–55, 2021, Accessed: 00, 2021. [Online]. Available: