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Title Trade Policy Institutions and Economic Growth Nexus: A Panel Data Analysis of Selected Asian Countries

Author(s) Amreen Ahmed

Abstract This study has tried to analyze how much Government decisions regarding trade policy affecting the economic performance of these developing nations. Overall, this research has been partitioned into three parts. First part is about to deal with the trade policy formation effect in economic growth in developing countries. For the first time, such an empirical relationship has been developed for considering only developing nations. Moreover, Asian’s countries have been further divided into two broad categories i.e., second is institution how much effect in economic growth in Asian countries and third is the trade policy and institution both how much effect in economic growth in selected Asian countries. In use tariff and non-tariff variable, in tariff variables use AHSS. AHSS tariff rates are being taken as trade policy tool classifications have been chosen for making analysis. Time period is from 1996-2018 due to non-availability of output data beyond this time limit. AHSS trade policy instrument offering more efficient policies. After arriving at this economic growth, an attempt has been made in the second section to analyze quantitatively how political institution in these developing nations, their control of corruption, government effectiveness, political stability, regality quality, rule of law, voice and accountability their state fragility and their governance performance is affecting the decision-making process regarding trade policy formation. Moreover, for the first time, endogeneity of trade policy is being tried to capture by using diversified institutional parameters these affect decision making capacity regarding trade in a nation, which ultimately help in shaping the right policy choice. Time span is again from 1996-2018 but the sample size has been decreased to 14 developing nations after trimming the collected 132 number of nations on the basis of non-availability of data for various institutional and trade policy variables at initial stages. Instrumental variable technique dynamic-GMM technique is being applied here for capturing the endogeneity problem of trade policies in Trade Policy-Growth nexus. Results are supporting existing theory and literature regarding the relationship between various measures of trade policies and economic performance. Moreover, it has also been observed that institutional parameters are explaining more to the Trade Policy-Growth nexus in developing nations. Therefore, this study suggests to policy makers that such a policy framework should be designed for developing nation which covers both of these aspects side by side trade policy along with political institution reforms in policy making.

Type Thesis/Dissertation

Faculty Management Sciences

Department Economics

Language English

Publication Date 2022-02-28

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