Trade Liberalisation and Growth

Trade liberalisation in developing countries over the last 20 years has often been considered as a prerequisite to growth. This article uses the autoregressive distributed lag modelling approach to cointegration and examines the relationships between growth and trade liberalisation in the context of the Indian and Korean economy. Using three indicators of liberalisation, the article finds no meaningful relationship between the growth rate of real GDP or per capita real GDP and trade openness.