A nexus between macroeconomic dynamics and trade openness: moderating role of institutional quality
Business Process Management Journal
ISSN: 1463-7154
Article publication date: 30 April 2021
Issue publication date: 12 October 2021
Abstract
Purpose
First, the current study contributes to the available debate by reinvestigating the impact of economic growth (EG), foreign direct investment (FDI), technological innovation (TI) and inflation (INF) on trade openness (TO). Second, the study tests the moderating role of institutional quality (INS) on the relationship among EG, FDI, TI and TO. Third, the study tests how TO contributes to EG efficiency.
Design/methodology/approach
The study collects the data from the group of twenty (G20) economies for the period of 1998–2020. The study applied the Kao (1999), Pedroni (2001), and Palamuleni (2017) cointegration tests to test the long-run association between variables. The study applied fully modified least square (FMOLS) and dynamic least square (DOLS) models to test the hypotheses.
Findings
Findings of the study showed the positive impact of EG, FDI and TI on TO, which becomes more positive in the presence of institutional quality. Results indicate that INS plays an enhancing role in the relationship between FDI and TO, EG and TO and TI and TO. The study showed a negative relationship between INF and TO, and institutional quality plays a buffering role in the relationship between INF and TO.
Originality/value
First, the study reinvestigates the empirical association among EG, FDI, TI, INF and TO. Second, the study tests the moderating role of INS on the relationship between the proposed variables by developing an index of all the indicators of INS. Third, the study tests the contributions of TO in economic efficiency (ECE). The contributions of the present study will increase the available literature of TO and help the policy makers of G20 nations to suggest important policies to promote TO and ECE.
Keywords
Acknowledgements
Retraction notice: The publishers of the Business Process Management Journal wish to retract the article Zhuang, Y., Yang, S., Chupradit, S., Nawaz, M.A., Xiong, R. and Koksal, C. (2021), “A nexus between macroeconomic dynamics and trade openness: moderating role of institutional quality”, Business Process Management Journal, Vol. 27 No. 6, pp. 1703-1719. https://doi.org/10.1108/BPMJ-12-2020-0594. This article was originally submitted to the Special Issue: Intelligent solutions in business administration, economics and accounting policy, which was subsequently cancelled.
Following concerns raised by Chiang Mai University regarding the authorship of this article, an investigation has shown evidence of a compromised peer review process. As a result, the findings of the article cannot be relied upon.
Authors submitting to the journal are expected to adhere to the guidelines and policies of the journal.
Despite numerous attempts to contact the authors, the journal has received no response; the response of the authors would be gratefully received.
The publishers of the journal sincerely apologize to the readers.
Funding: This article was supported by National Social Science Foundation of China (19BJY096).
Citation
Zhuang, Y., Yang, S., Chupradit, S., Nawaz, M.A., Xiong, R. and Koksal, C. (2021), "A nexus between macroeconomic dynamics and trade openness: moderating role of institutional quality", Business Process Management Journal, Vol. 27 No. 6, pp. 1703-1719. https://doi.org/10.1108/BPMJ-12-2020-0594
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited