Impact of Trade Liberalization on Economic Growth in Japan: Autoregressive Distributed Lag Model (ARDL)
The objective of this study is to identify the impact of trade liberalization on economic growth in Japan. Annual data are utilized from 1985 to 2016 via on Autoregressive Distributed Lag Model (ARDL) Cointegration test and Vector Error Correction Model (VECM) based Granger causality. The finding...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Human Resource Management Academic Research Society
2021
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/34828/1/abstract.pdf http://ir.unimas.my/id/eprint/34828/ http://www.hrmars.com |
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| Institution: | Universiti Malaysia Sarawak |
| Language: | English |
| Summary: | The objective of this study is to identify the impact of trade liberalization on economic growth
in Japan. Annual data are utilized from 1985 to 2016 via on Autoregressive Distributed Lag
Model (ARDL) Cointegration test and Vector Error Correction Model (VECM) based Granger
causality. The findings from unit root tests revealed that all the variables of mixed results
whereby they are integrated at I(0) and I(1) and could proceed to the ARDL Cointegration test.
Furthermore, all the variables have long-run relationships between trade openness,
investment, education, inflation and economic growth in Japan. However, this study found a
significant positive of trade openness and investment on economic growth in the long run.
Lastly, VECM based Granger causality showed some of the causality relationships between
variables in the short run for Japan. |
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