The Commutative Effect and Causality of Openness and Indigenous Factors Among World Economies

35 Pages Posted: 24 Jun 2020

See all articles by xianbo zhou

xianbo zhou

Sun Yat-sen University (SYSU) - Lingnan (University) College

Kui-Wai Li

City University of Hong Kong (CityU) - Department of Economics & Finance

Date Written: June 2, 2008

Abstract

The paper studies the commutative and causality relationship between economic openness and indigenous factors. The construction of the Openness Index and the Indigenous Index provides a measure on the extent of openness and indigenous development among world economies. The two indices are used to study their commutative effect and causality. The empirical findings show that there is a positive and significant static effect of openness on indigenous factors and vice versa; however the latter is larger. There are bi-directional dynamic causality relationships between openness and indigenous factors. Indigenous factors help to forecast openness factors and vice versa.

Keywords: Openness, indigeneity, panel data model, commutative effect, causality

JEL Classification: C33, F02, O11

Suggested Citation

zhou, xianbo and Li, Kui-Wai, The Commutative Effect and Causality of Openness and Indigenous Factors Among World Economies (June 2, 2008). Available at SSRN: https://ssrn.com/abstract=3616959 or http://dx.doi.org/10.2139/ssrn.3616959

Xianbo Zhou

Sun Yat-sen University (SYSU) - Lingnan (University) College ( email )

135, Xingang Xi Road
Guangzhou, Guangdong 510275
China

Kui-Wai Li (Contact Author)

City University of Hong Kong (CityU) - Department of Economics & Finance ( email )

Hong Kong

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
17
Abstract Views
248
PlumX Metrics