A Cross-Country Empirical Study on the Impact of Trade Openness on Economic Growth: A Comparative Analysis Based on Panel Data of 97 Countries

Yuhan Yang; Shunxiang Bao

doi:10.62177/apemr.v3i3.1379

Authors

Yuhan Yang University of Shanghai for Science and Technology
Shunxiang Bao University of Shanghai for Science and Technology

DOI:

https://doi.org/10.62177/apemr.v3i3.1379

Keywords:

Degree of Trade Openness, Economic Growth

Abstract

This paper conducts a systematic empirical examination of the impact of trade openness on economic growth based on cross-country panel data from 97 countries over the period 2010–2023. The results show that trade openness has a significant and robust positive effect on economic growth. This effect is masked when control variables are not included, and it becomes more pronounced after controlling for country heterogeneity. Time shocks slightly weaken but do not alter the core conclusion. Financial development and government size generally have negative effects in most models, while the effect of human capital is model-dependent. The findings of this paper provide empirical evidence for countries to optimize trade policies and improve institutional support to release the dividends of openness.

Downloads

Download data is not yet available.

References

Ayesu, E. K., Sakyi, D., & Arthur, E. (2026). Trade openness and economic growth in Africa: The role of seaport efficiency. WMU Journal of Maritime Affairs, 1–20.

Cenaj, A., & Kilaj, D. (2025). The impact of trade openness on the economic growth of Southeast European countries. SEEU Review, 20(2), 3–19.

Lee, C. C., & Zhao, Y. N. (2025). What affects national innovative capacity? The role of economic growth and trade openness. Economic Analysis and Policy, 86, 1099–1118.

Morán, R. O., Llonto, Y., Cúneo, F. E., Lizana, N. P., Castro, P. J., Pérez, M. J., & Montenegro, M. E. (2025). The macroeconomic determinants of trade openness in Latin American countries: A panel data analysis. F1000Research, 13.

Nguyen, T. V., Dinh, T. K. C., Vu, N. X., & Pham, X. H. (2026). Determinants of economic growth in Korea: The roles of financial development, energy use, trade openness, and open innovation (ARDL evidence). Energy Conversion and Management: X, 30, 101823.

Pomerlyan, E., Belitski, M., Orel, A., & Bondarenko, A. (2026). Trade openness in economic performance: a comparative perspective of the world integration blocs. Eurasian Economic Review, 1–51.

Tarchoun, M., & Ghraieb, I. (2022). Trade openness relationship with macroeconomic factors on Saudi Arabian economy: ARDL application. International Trade, Politics and Development, 6(3), 121–129.

Trabelsi, R., Kalai, M., & Helali, K. (2025). The nonlinear impact of trade openness on the economic growth in Maghreb countries. Quality & Quantity, 60(1), 1–22.

Yu, C., & Gu, C. (2025). Trade openness, market integration and economic growth: Evidence from China. International Review of Financial Analysis, 106, 104484.