Linear and non-linear regression analysis of Trade Openness and FDI on Economic Growth of Myanmar (1990-2022)

Volume : IEJ Vol.3 No.(1)

Published Date : June 2024


The study objects to investigate trade openness, foreign direct investment (FDI) and their impact on economic growth of Myanmar for the periods between 1990 and 2022. Authors employ Ordinary Least Squares (OLS) multiple linear regression model and Exponential Smooth Threshold Regression (ESTR) Model. Before model estimation, we first performed a Unit Root Testing with Phillips-Perron (1988) to check the stationarity issues. We second performed Pearson correlation test to check if the correlation exists between dependent and independent variables before model estimation. The findings of the results reveal that trade openness has positive influence on economic growth of Myanmar. The results also show that foreign direct investment does not have positive effect on economic growth of Myanmar. Future study is encouraged to adopt models that can capture short-/long-run relationships between dependent and independent variables.