International Economics

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International Economics 3307AFE Group Assignment | Extend the table 1.3, examine the openness for various countries and analyse the relationship between the openness and the faster long-term growth in standard of living | (Makin, A.J., 2002, p.10) | | | |

Sanjeev Henny s2760582
Yu-Ting, Lin s2672341
Yen-Ting, Lee s2768300

World count: 985 |

With the increasing globalization of most economies, there is consequently more focus on understanding how international integrations influence macroeconomic performance. Economists use numerous indicators to measure the degree of an economy’s openness. One of the common indicators is the percentage of trade as a share of gross domestic product (GDP). It is the sum of exports and imports of goods and services measured as a share of GDP. (World Bank, 2013). This essay will firstly generally examine the degree of openness for various countries by using the percentage of trade as a share of GDP. It will then outline Singapore as the most open country, Brazil as the least open country and the most rapidly increased openness: Hong Kong. Finally, it will examine whether the degree of openness is correlated with faster long term growth in standard of living.
In advanced economies, there are many kinds of methods to analyse an economy’s openness. There has been one commonly used indicator which is the percentage value of the sum of exports plus imports as a share of national product. (Makin, 2009, p.8). Therefore, the feature in the data that we have complied is using the value of the sum of exports and imports divided by GDP times hundred. With this resource we found that the average of trade in Singapore, 334, is the highest number after Singapore separated from Malaysia in 1965. The trends of Singapore have stably increased during fifty years but it has suddenly dropped a little bit…...

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