Openness, Growth, and Development: Evidence from a Panel of Developing Countries
Scientific Journal of Administrative Development
This paper examines the interaction between openness, growth, and devel - opment using a panel of forty-seven developing countries and five-year averages for the period, 1965-1990. Its primary objective is to determine whether there is a direct link between the level of development and openness, while controlling for the indi - rect effect of openness through its impact on economic growth. Using a two-equation simultaneous-equations model of development and growth and three alternative measures of openness, our findings suggest that openness has a positive influence on both economic growth and human development. We also find that while economic growth makes a positive contribution to development, the converse is not true in that the more developed a nation the slower its growth rate.