Trade openness impact on economic growth in developing South East Asia countries: Malaysia and Thailand / Shahridah Saidih

Trade openness has become vital in the development process of a nation nowadays. It has become important elements in helping poverty eradication, enhancing revenues and social welfare of a country. In the meantime, it also becomes necessary in measuring the continuous growth of an each countries in ensuring the level of income able to cover outflows. Nevertheless, most of the economists globally finding and adopting effective techniques in fundamental of amplifying and sustaining the economic growth. Therefore, this paper is conducting to determine the trade openness impact on economic growth in developing south East Asia countries of Malaysia and Thailand by implementing Marelli and Signorelli (2011) methods of openness, foreign direct investment (FDI) and gross fixed capital formation (GFCF) of the data from 1983 to 2012. Additionally, by adopting these variables the significant relationship and stationary or non-stationary will be estimated. The dependent variable used is gross domestic product (GDP) as indicator to the economic growth. In which changes of the GDP is due to the changes in the inputs of openness, FDI and GFCF.