This analysis shows the interaction of trade and foreign direct investment impacting GDP growth in G20 nations, highlighting strategic policy implications.
Key Points
Trade openness has a long-run equilibrium relationship with GDP growth, highlighting its importance for economic performance.
Findings showed that liberal trade policies positively contributed to foreign direct investment in G20 countries.
The autoregressive distributed lag analysis revealed immediate causal linkages between trade openness and GDP growth.
Policymakers in G20 nations should focus on reducing non-tariff barriers to enhance FDI and support sustainable growth.