The Nexus of Trade Openness, Institutions and Economic Growth: An Empirical Investigation of BRICS Countries

AuthorMehraj Ahmad Sheikh,Mushtaq Ahmad Malik
DOI10.1177/0015732521995162
Published date01 May 2021
Date01 May 2021
The Nexus of Trade
Openness, Institutions
and Economic Growth:
An Empirical
Investigation of BRICS
Countries
Mehraj Ahmad Sheikh1 and
Mushtaq Ahmad Malik2
Abstract
The empirical limits of this study lie in investigating the nexus between trade
openness, institutional quality and economic growth in emerging BRICS coun-
tries. Having nascent institutions, the study aims to analyse their role in determin-
ing the trade–growth relationship. Using endogeneity expunging GMM technique,
the empirical evidence shows—first, imports play a crucial part in augmenting
growth. While exports and overall trade openness do show a positive impact,
they lack the statistical significance. Second, institutional infrastructure shows an
indirect effect by augmenting the economic performance when complemented
with higher imports. These countries stand to gain more from imports with
improved institutional infrastructure.
JEL Codes: F10, O4, C23
Keywords
Trade openness, institutions, economic growth, BRICS
Article
1 Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India.
2 Department of West Asian Studies, Aligarh Muslim University, Aligarh, Uttar Pradesh, India.
Corresponding author:
Mehraj Ahmad Sheikh, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh
202001, India.
E-mail: mehrajzhdc@gmail.com
Foreign Trade Review
56(2) 206–215, 2021
©2021 Indian Institute of
Foreign Trade
Reprints and permissions:
in.sagepub.com/journals-permissions-india
DOI: 10.1177/0015732521995162
journals.sagepub.com/home/ftr

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