Assessing the nexus between market openness and economic growth: an emerging market perspective

Abstract

The countries with greater economic freedom are believed to have higher economic progress. Over the last two decades, researchers have focused on the impact of institutional quality on economic development of a country but not much insights are drawn about the individual components of economic freedom. The present study addresses this gap by assessing the impact of market openness on economic growth of the emerging economies, the BRICS bloc for the period 1995-2019 using Feasible Generalized Least Squares method. Our panel data analysis revealed a new evidence suggesting a negative impact of the sub-components of market openness on economic growth.

Keywords

• economic freedom
• market openness
• gross domestic product
• panel data
• brics