The Simultaneous Effects of Investment and Trade: A Perspective of Manufacturing Growth in Asian Economies
The Simultaneous Effects of Investment and Trade: A Perspective of Manufacturing Growth in Asian Economies

Summary/Abstract: This study examines the relationship between manufacture value-added growth and trade openness in Asian economies. For this purpose, we choose 18 years’ panel data set including suitable variables for estimation econometric strategies such as Ordinary Least Square, Fixed Effect and Random Effect models including GMM aims at how to do trade openness and investment affect manufacture value-added in Asian regions. Findings reveal that trade openness must be improved along with investment in different sectors. The coefficient value of product R&D and investment in transport, ICT and energy sectors decline manufacture value-added growth. R&D more contributes to manufacturing of value-added growth rather than trade openness. In addition, the impact of public investment in transport and ICT is lower on manufacture value-added growth by 11%, 10% respectively. Therefore, trade openness square adversely impacts on manufacture value-added growth than trade openness.

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