Trade Openness, Productivity, and Growth: A Comparative Empirical Study

Abstract

Trade openness has long been regarded as a key driver of economic growth, primarily through its influence on productivity enhancement, technological diffusion, and efficient resource allocation. This study empirically examines the relationship between trade openness, productivity, and economic growth using a comparative framework across selected developing and emerging economies. By integrating cross-country panel data and productivity indicators, the study evaluates how varying degrees of trade liberalization affect total factor productivity and long-term growth trajectories. The findings suggest that trade openness positively contributes to productivity gains and growth performance, although the magnitude of effects differs across income groups and institutional settings. The study highlights the importance of complementary policies—such as human capital development and institutional quality—in maximizing the growth benefits of openness. These results contribute to ongoing debates on globalization and provide policy-relevant insights for developing economies pursuing trade-led growth strategies.