The Study of Inflation Main Determinants by Emphasizing on Government Size Trade Openness, Trade Financial and Economic Performances, The Case Study of D8 Countries

Subject Areas : Labor and Demographic Economics

Received: 2015-04-26 Accepted : 2015-04-26 Published : 2010-04-01

Keywords: Trade openness, Financial development, Financial Openness, Economic Performance,

Abstract :

This paper examines the effects of trade and financial openness on economic performances of D8 countries in both real and financial sectors by using Panel Data model. Results indicate that there is a positive effect of trade openness on financial sectors, while negative effect on economic growth. On the other hand, there is no significant effect of financial openness on real and financial sectors. Since the positive effect of trade openness on financial sectors is much higher than the negative effect on real sector, trade openness policy would be recommended in those countries.

References:

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