The Interaction Effect of Trade Openness and Good Governance on Economic Growth: The Case of the Commonwealth Caribbean Countries

• Main Authors: Pol, Jair Jamir, 彭家爾
• Other Authors: Hsueh, Chien-Wu
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/v8u885

碩士 === 國立政治大學 === 國際研究英語碩士學位學程(IMPIS) === 106 === Given their similar characteristics and economic activities, there exists varying differences in the economic growth trends of the Commonwealth Caribbean countries post-independence. What explains this? In trying to answer this puzzle, together with an under researched literature, the author examines the nexus: trade openness, good governance and economic growth in the Commonwealth Caribbean context. The author argues that these factors are essential in explaining and understanding the different economic growth trends amongst the Commonwealth Caribbean countries. It is imperative for underperforming Commonwealth Caribbean countries to increase trade but at the same time improve their governance standings. With an increase in trade, indicating higher inflow of money for the country, good policies and management of money, countries can observe unprecedented economic growth. Using time-series cross-sectional data, the author employs the Fixed Effect model to estimate the effects that trade openness and good governance have on the economies of the twelve Commonwealth Caribbean countries for the period 1972 to 2016. The results strongly support the argument that good governance alongside trade openness do explain the different economic growth patterns observed amongst Commonwealth Caribbean countries post-independence.