The Effect of Openness on Economic Growth for BRIC-T Countries: Panel Data Analysis

Abstract

In this study, the effect of trade openness on economic growth was searched for the most rapidly developing countries (emerging markets; Brazil, Russia, India, China and Turkey, BRIC-T) via panel data analysis by using the annual data of the period from 1989 to 2010. As trade openness variable, the rate of external trade (Export+ Import) to GDP was used. According to empirical evidence derived from the study made with panel data analysis it was found that the effect of openness on economic growth was positive, and statistically significant in line with theoretical expectations.