Trade openness, growth, income inequality and environment in developing and OECD countries

Trade openness can be very important for country’s development and economic growth. Much of the debates have focused on the role of trade openness on growth even though it can also be related to income inequality and environment. The objective of this study is to investigate the relationship between...

Full description

Saved in:

Bibliographic Details
Main Author:	Idris, Jamilah
Format:	Thesis
Language:	English
Published:	2015
Subjects:	Commercial policy OECD countries - Commercial policy
Online Access:	http://psasir.upm.edu.my/id/eprint/71081/1/FEP%202015%2037%20-%20IR.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-upm-ir.71081
record_format	uketd_dc
spelling	my-upm-ir.710812019-11-12T08:14:52Z Trade openness, growth, income inequality and environment in developing and OECD countries 2015-01 Idris, Jamilah Trade openness can be very important for country’s development and economic growth. Much of the debates have focused on the role of trade openness on growth even though it can also be related to income inequality and environment. The objective of this study is to investigate the relationship between trade openness, economic growth, income inequality and environment in a global perspective covering 87 selected countries, which is comprises the Organisation for Economic Co-operation and Development (OECD) and developing countries for the period 1977 to 2011. The first objective is to determine the impact of trade openness on economic growth, while the second objective is to analyse the relationship between trade openness and income inequality, and the third objective is to determine the impact of trade openness on environment. This study employs the system Generalized Method of Moments (GMM), a method popularized by Arellano and Bond (1991), and Blundell and Bond (1998). Our result suggests that trade openness has positive impact on economic growth in all countries (87), OECD and developing countries. Although trade openness is important for growth stimulation, opening up new markets and exposing domestic firms to international practices, trade can create the necessary conditions for poverty alleviation. Our study found that trade openness has improved income inequality in developing countries which support the Heckscher Ohlin theory except for OECD countries. Finally, our results suggest that openness along with the other variable such as economic growth, foreign direct investment and manufacturing value added do have positive impact on CO2 emission. Comprehensive environmental policies, legislation, and the role of institutions are important in order to manage the CO2 emission problem. Policy makers should also put more thought on promoting growth through trade but also how the benefit from the growth is well distributed across the population while keeping the environment clean and healthy. Commercial policy OECD countries - Commercial policy 2015-01 Thesis http://psasir.upm.edu.my/id/eprint/71081/ http://psasir.upm.edu.my/id/eprint/71081/1/FEP%202015%2037%20-%20IR.pdf text en public doctoral Universiti Putra Malaysia Commercial policy OECD countries - Commercial policy
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Commercial policy OECD countries - Commercial policy
spellingShingle	Commercial policy OECD countries - Commercial policy Idris, Jamilah Trade openness, growth, income inequality and environment in developing and OECD countries
description	Trade openness can be very important for country’s development and economic growth. Much of the debates have focused on the role of trade openness on growth even though it can also be related to income inequality and environment. The objective of this study is to investigate the relationship between trade openness, economic growth, income inequality and environment in a global perspective covering 87 selected countries, which is comprises the Organisation for Economic Co-operation and Development (OECD) and developing countries for the period 1977 to 2011. The first objective is to determine the impact of trade openness on economic growth, while the second objective is to analyse the relationship between trade openness and income inequality, and the third objective is to determine the impact of trade openness on environment. This study employs the system Generalized Method of Moments (GMM), a method popularized by Arellano and Bond (1991), and Blundell and Bond (1998). Our result suggests that trade openness has positive impact on economic growth in all countries (87), OECD and developing countries. Although trade openness is important for growth stimulation, opening up new markets and exposing domestic firms to international practices, trade can create the necessary conditions for poverty alleviation. Our study found that trade openness has improved income inequality in developing countries which support the Heckscher Ohlin theory except for OECD countries. Finally, our results suggest that openness along with the other variable such as economic growth, foreign direct investment and manufacturing value added do have positive impact on CO2 emission. Comprehensive environmental policies, legislation, and the role of institutions are important in order to manage the CO2 emission problem. Policy makers should also put more thought on promoting growth through trade but also how the benefit from the growth is well distributed across the population while keeping the environment clean and healthy.
format	Thesis
qualification_level	Doctorate
author	Idris, Jamilah
author_facet	Idris, Jamilah
author_sort	Idris, Jamilah
title	Trade openness, growth, income inequality and environment in developing and OECD countries
title_short	Trade openness, growth, income inequality and environment in developing and OECD countries
title_full	Trade openness, growth, income inequality and environment in developing and OECD countries
title_fullStr	Trade openness, growth, income inequality and environment in developing and OECD countries
title_full_unstemmed	Trade openness, growth, income inequality and environment in developing and OECD countries
title_sort	trade openness, growth, income inequality and environment in developing and oecd countries
granting_institution	Universiti Putra Malaysia
publishDate	2015
url	http://psasir.upm.edu.my/id/eprint/71081/1/FEP%202015%2037%20-%20IR.pdf
_version_	1747812967286571008

Trade openness, growth, income inequality and environment in developing and OECD countries

Similar Items