(The) Effect of Trade Openness on Economic Growth of Myanmar

다국어 초록 (Multilingual Abstract)

Since policy makers of Myanmar regard trade as a tool for economic development and poverty reduction, they are transforming nation’s economy into one that addresses higher growth through improved trade openness. This thesis analyze the effect of trade openness in economic growth in the case of Myanmar by using annual time data set from 1990 to 2014 and OLS regression model is applied in the study. The economic growth is measured by real GDP and the share of trade in GDP (exports plus imports divided by GDP) is taken as the measure of trade openness instead of other openness measures. FDI and inflation rate are also put into the model as control variables. The empirical evidence indicates that trade openness negatively effects on economic growth (GDP) of Myanmar due to the low share of trade in GDP, non value-added or low quality export products and low capacity in export diversification in term of products and market and the long run effect of inward oriented economy. FDI has positive impact on the country’s economic growth. However, the effect of inflation is not significant in 5% but it is significant in 10% critical value and the relationship is positive. In order to boost economic growth through trade, the government of Myanmar needs to accelerate economic reforms through trade liberalizations for more open, transparent and favorable business environment.

목차 (Table of Contents)

• CHAPTER I : INTRODUCTION 1
• 1.1 Introduction and Background 1
• 1.2 Statement of Problem 6
• 1.3 Research Questions 6
• 1.4 Research Hypothesis 7
• 1.5 Purpose of Study 7
• 1.6 Significant of the Study 8
• 1.7 Limitation of the Study 9
• CHAPTER II: LITERATURE REVIEW 10
• CHAPTER III : OVERVIEW OF GDP, TRADE, FDI AND INFLATION RATE IN MYANMAR, DATA DESCRIPTION AND METHODOLOGY 17
• 3.1 Overview of GDP, Trade, FDI and Inflation in Myanmar 17
• 3.2 Data Source and Description 25
• 3.2.1 Economic development or Gross Domestic Product (GDP) 25
• 3.2.2 Trade openness 26
• 3.2.3 Foreign Direct Investment (FDI) 26
• 3.2.4 Inflation Rate 26
• 3.3 Methodology 27
• 3.3.1 Unit root test 28
• 3.3.2 Ordinary Least Square Regression 28
• CHAPTER IV : EMPIRICAL RESULTS AND DISCUSSION 30
• 4.1 Testing for Unit Root 30
• 4.2 Result of Ordinary Least Square regression 31
• CHAPTER V : CONCLUSION AND RECOMMENDATIONS 40
• 5.1. Conclusion 40
• 5.2. Recommendations 42
• REFERENCES 45
• WEBSITES: 49
• APPENDIX : 50