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Impact of Trade Liberalization on Economic Growth in ASEAN: Copula-Based Seemingly Unrelated Regression Model

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Integrated Uncertainty in Knowledge Modelling and Decision Making (IUKM 2018)

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 10758))

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Abstract

Trade liberalization especially ASEAN-5 countries has raised in globalization economy. To understand the linkage of trade openness and economic growth, we examine the endogenous growth approach participated with trade liberalization indicators. The proposed method involved the multivariate Copula-based Seemingly Unrelated Regression (SUR) model with an unstructured correlation matrix. Using data on the augmented aggregate production function (human, capital and trade proxy) from 1980 to 2015, the findings convey that the multivariate Copula-based SUR model outperforms the conventional SUR model in terms of AIC and BIC. In addition, the results indicate that the trade-outward orientations in ASEAN affect economic growth differently. The Philippines and Thailand perform a significant positive effects of the terms of trade (TOT) and foreign direct investment (FDI) to growth, while Indonesia has a negative impact. Furthermore, the total factor production (TFP) creates a high contribution towards ASEAN economic growth.

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Authors and Affiliations

  1. Faculty of Economics, Prince of Songkla University, Songkhla, 90110, Thailand

    Arisara Romyen

  2. Faculty of Economics, Chiang Mai University, Chiang Mai, 50200, Thailand

    Arisara Romyen, Jianxu Liu & Songsak Sriboonchitta

  3. Faculty of Economics, Center of Excellence in Econometrics, Chiang Mai University, Chiang Mai, 50200, Thailand

    Jianxu Liu & Songsak Sriboonchitta

Authors
  1. Arisara Romyen
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  2. Jianxu Liu
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  3. Songsak Sriboonchitta
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Corresponding author

Correspondence to Jianxu Liu .

Editor information

Editors and Affiliations

  1. Japan Advanced Institute of Science and Technology, Nomi, Japan

    Van-Nam Huynh

  2. Osaka University, Osaka, Japan

    Masahiro Inuiguchi

  3. Hanoi National University of Education, Hanoi, Vietnam

    Dang Hung Tran

  4. Université de Technologie de Compiègne, Compiègne, France

    Thierry Denoeux

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Romyen, A., Liu, J., Sriboonchitta, S. (2018). Impact of Trade Liberalization on Economic Growth in ASEAN: Copula-Based Seemingly Unrelated Regression Model. In: Huynh, VN., Inuiguchi, M., Tran, D., Denoeux, T. (eds) Integrated Uncertainty in Knowledge Modelling and Decision Making. IUKM 2018. Lecture Notes in Computer Science(), vol 10758. Springer, Cham. https://doi.org/10.1007/978-3-319-75429-1_29

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  • DOI: https://doi.org/10.1007/978-3-319-75429-1_29

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-75428-4

  • Online ISBN: 978-3-319-75429-1

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