Trade Openness and Economic Growth: The Case of Tunisia

Abstract

The contribution of trade openness in economic growth has been the subject of several theoretical and empirical studies in the economic literature. This paper analyzes the impact of trade openness on economic growth in the case of Tunisia using OLS method over the period 1975-2010. The results show that trade openness, foreign direct investment, and human capital represented by the enrollment of the school, as well as the ratio of the money taken as a proxy for financial development exert long-term positive and significant effects on economic growth.
Keywords: Economic growth, OLS approach, Trade openness.