Causality between Openness and Indigenous Factors among World Economies

Zhou, X. and Li, Kui-Wai (2010): Causality between Openness and Indigenous Factors among World Economies. Published in: Investment Management and Financial Innovations , Vol. 7, No. 2 (2010): pp. 159-166.

Abstract

The paper studies the causality relationship between economic openness and indigenous factors. The construction of the Openness Index and the Indigenous Index provides a measure on the extent of openness and indigenous development among world economies. The two indices are used to study their causality. The empirical findings show that there are bi-directional dynamic causality relationships between openness and indigenous factors. Indigenous factors help to forecast openness factors and vice versa.

• Item Type: MPRA Paper
• Language: English
• Keywords: Openness, indigeneity, panel data model, causality test
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; F - International Economics > F0 - General > F02 - International Economic Order and Integration; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models

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