The short- and long-run relationship between trade openness and economic growth in Uganda

Using data covering the period from 1983 to 2019, we apply the autoregressive distributed lag (ARDL) bound testing approach to investigate whether trade openness has spurred economic growth in Uganda. The extant literature shows that trade openness increases economic growth, but this empirical evide...

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Autor principal:	Stephen Esaku
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	trade growth ardl exports imports Finance HG1-9999 Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/6ccde7f9907e40cb825ed2d91d4f37c3
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id	oai:doaj.org-article:6ccde7f9907e40cb825ed2d91d4f37c3
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spelling	oai:doaj.org-article:6ccde7f9907e40cb825ed2d91d4f37c32021-11-17T14:22:00ZThe short- and long-run relationship between trade openness and economic growth in Uganda2332-203910.1080/23322039.2021.1999060https://doaj.org/article/6ccde7f9907e40cb825ed2d91d4f37c32021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23322039.2021.1999060https://doaj.org/toc/2332-2039Using data covering the period from 1983 to 2019, we apply the autoregressive distributed lag (ARDL) bound testing approach to investigate whether trade openness has spurred economic growth in Uganda. The extant literature shows that trade openness increases economic growth, but this empirical evidence remains contested. Our empirical results on the long-run relationship reveal the existence of a positive and statistically significant relationship between trade openness and economic growth. Except for the use of exports to measure trade openness, using openness index and imports to proxy for trade openness indicates that an increase in the above indexes leads to increased economic growth in the long-run. In the short-run, however, more openness, exports and imports lead to increased economic growth. This implies that a significant proportion of economic growth in Uganda has been due to short-run increase in the country’s openness, more exports and imports. This paper confirms that using openness and imports indexes to proxy for trade yields more robust results compared to the use of export indices. At the policy level, these results show that encouraging more trade and imports that embody technology or intermediate inputs is essential in the production process could increase economic growth in the long-run. In the short-run, expanding the scope of exports and imports is important for economic growth.Stephen EsakuTaylor & Francis GrouparticletradegrowthardlexportsimportsFinanceHG1-9999Economic theory. DemographyHB1-3840ENCogent Economics & Finance, Vol 9, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	trade growth ardl exports imports Finance HG1-9999 Economic theory. Demography HB1-3840
spellingShingle	trade growth ardl exports imports Finance HG1-9999 Economic theory. Demography HB1-3840 Stephen Esaku The short- and long-run relationship between trade openness and economic growth in Uganda
description	Using data covering the period from 1983 to 2019, we apply the autoregressive distributed lag (ARDL) bound testing approach to investigate whether trade openness has spurred economic growth in Uganda. The extant literature shows that trade openness increases economic growth, but this empirical evidence remains contested. Our empirical results on the long-run relationship reveal the existence of a positive and statistically significant relationship between trade openness and economic growth. Except for the use of exports to measure trade openness, using openness index and imports to proxy for trade openness indicates that an increase in the above indexes leads to increased economic growth in the long-run. In the short-run, however, more openness, exports and imports lead to increased economic growth. This implies that a significant proportion of economic growth in Uganda has been due to short-run increase in the country’s openness, more exports and imports. This paper confirms that using openness and imports indexes to proxy for trade yields more robust results compared to the use of export indices. At the policy level, these results show that encouraging more trade and imports that embody technology or intermediate inputs is essential in the production process could increase economic growth in the long-run. In the short-run, expanding the scope of exports and imports is important for economic growth.
format	article
author	Stephen Esaku
author_facet	Stephen Esaku
author_sort	Stephen Esaku
title	The short- and long-run relationship between trade openness and economic growth in Uganda
title_short	The short- and long-run relationship between trade openness and economic growth in Uganda
title_full	The short- and long-run relationship between trade openness and economic growth in Uganda
title_fullStr	The short- and long-run relationship between trade openness and economic growth in Uganda
title_full_unstemmed	The short- and long-run relationship between trade openness and economic growth in Uganda
title_sort	short- and long-run relationship between trade openness and economic growth in uganda
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/6ccde7f9907e40cb825ed2d91d4f37c3
work_keys_str_mv	AT stephenesaku theshortandlongrunrelationshipbetweentradeopennessandeconomicgrowthinuganda AT stephenesaku shortandlongrunrelationshipbetweentradeopennessandeconomicgrowthinuganda
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The short- and long-run relationship between trade openness and economic growth in Uganda

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