An Empirical Analysis of Trade Openness and Economic Growth in South Asian Countries

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Trade openness positively affects GDP, with a 1% increase in openness leading to a 0.87% growth in GDP.
Population growth also positively influences GDP; a 1% increase correlates with a 0.58% GDP rise.
Fixed-effects model was selected based on the Hausman test as the most appropriate for the analysis.
Findings support policies for reducing trade barriers and encouraging regional integration for economic benefits.

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Panel data analysis reveals trade openness significantly boosts GDP in South Asia, suggesting policy changes are necessary.

Safi et al. (2025) studied this question.

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