International Conference on Eurasian Economies
9-11 September 2015 – Kazan, RUSSIA
Paper detail
Paper ID : 1373
Status : Paper published
Language : English
Topic : Macroeconomics
Presenter: Asst. Prof. Dr. Naime İrem Duran
Session : 2A Macroeconomics
Trade Openness and Macroeconomic Policy in OECD Countries
Trade Openness and Macroeconomic Policy in OECD Countries
- Asst. Prof. Dr. Naime İrem Duran (Istanbul Beykent University, Türkiye)
- Prof. Dr. Sudi Apak (Esenyurt University, Türkiye)
Abstract
Trade openness has been subject to an important issue many studies in literature. It allows us to analyze potential trade as a percentage of gross domestic product. Total value of international trade in goods and services shows the countries’ integration into the world economy. Generally, small countries are more integrated because of their dependency on imports. On the other hand, there many variables which effects trade integration. Our study focuses on to analyze the effects on trade openness and make inferences for OECD countries. In this paper we aim to examine the relationship between trade openness and macro-economic indicators in OECD countries. To analyze the relationship, we used panel data regression analysis. Data obtained from World Bank, The Heritage Foundation and United Nations Conference on Trade and Development (UNCTAD). The panel data covers 2000-2013 periods and 33 countries. The analysis made through the Stata econometric packet program. We predicted pooled, fixed effects and random effects panel data models and analyzed them. It has been found that gross domestic savings, investment freedom, and unemployment rate are statistically significant. The results found in this paper show that investment freedom and gross domestic savings have positive effect on trade openness as we expected. On the other hand, unemployment rate has positive effect on trade openness. These findings have important policy implications for OECD countries. Our interpretation of these findings is that, integration to world economy has generally positive effects for macroeconomic factors in OECD countries, but it should be limited.
JEL codes: E66, C01
Duran, Naime İrem, Apak, Sudi (2015). "Trade Openness and Macroeconomic Policy in OECD Countries" in Proceedings of International Conference of Eurasian Economies 2015, pp.24-27, Kazan, RUSSIA.
DOI: https://doi.org/10.36880/C06.01373
