Asymmetric Relationship between Trade Openness and Economic Growth: Case study of Thailand
Keywords:Trade openness, Growth, Asymmetry: NARDL, Thailand
This study investigates the long-run relationship between trade openness and economic growth in Thailand using annual data from 1970-2020.The estimation technique is Non-Auto Regressive Distributed Lag Model (NARDL).The result shows positive long-run relationship between trade openness and growth, however, there exist asymmetric effects of positive and negative change in trade openness on economic growth. Positive change in trade openness creates positive economic growth less than negative economic growth due to negative change in trade openness. Furthermore, the study shows the crowding out effect of government expenditure on economic growth.
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