The Impact of Trade Openness on Economic Growth in Landlocked Developing Countries

Abstract

The argument over trade openness and its relationship to economic growth remains active, predominantly for landlocked countries, notwithstanding the wave of liberalization that has been examined during the previous few decades. It is still unclear how much trade openness influences economic growth in landlocked nations because some recent researchers have identified favorable impacts, while others have found negligible or negative consequences. Using Kazakhstan and Mongolia as case studies, we inspect how trade openness and economic expansion affect developing nations that are landlocked. Employing an Autoregressive Distributed Lag (ARDL) model in this research, we examined the short- and long-term connections between trade openness and economic growth from 1993 to 2021. The outcome demonstrates that trade openness has a favorable Short-term and long-term impact on economic growth in both landlocked emerging nations, namely Kazakhstan and Mongolia.