This study aimed to investigate the impact of trade openness on economic growth in Libya, during the period of 1962-2012. To achieve its objective the study has used Cobb-Douglas production function. In addition, it utilized the ARDL model, based on Bound test approach to Cointegration, and Unrestricted Error Correction Model UECM to analyse the long and short run relationship among the study variables.
According to the main results the study has found that the variables have a long run equilibrium relationship. The long run equation has indicated that the openness rate coefficient has a negative sign. However, the coefficients of the real exports, SHWX Index, and Hirschman Index have a positive sign. Moreover, they have been fond statistically significant. The short run context has demonstrated the same findings. Regarding the main variables, Granger Causality test has proposed that there is no causality relationship exists from trade openness, SHWX index, Hirschman Index to RGDPPC respectively. However, a positive bilateral causality relationship between real exports value and real GDP per capita has been found.
Publication Date
12/13/2017
Publisher
المؤتمر العلمي الدولي الأول حول السياسات الاقتصادية ومستقبل التنمية في ليبيا، كلية الاقتصاد والتجارة ، جامعة المرقب
حسين فرج الحويج | Hussen Faraj Alhwij | 7162