Exploring the Bi-directional Nexus between Trade Openness and Economic Growth: An Empirical Analysis of the Brazilian Economy

AbstractThis study inspects the influence of trade openness on the economic growth of Brazil by employing the autoregressive distributed lag (ARDL) approach over the period 1980–2024. Overall, empirical results show that trade volume has a positive and significant impact on economic growth. Findings further reveal that trade restriction measures have negative and significant impact on economic growth in long run as well as short run. The findings suggest that developing countries like Brazil need to consider trade openness policy as a long-term growth plan of the country. The policy direction of Brazil should focus on more liberal policies to enhance economic growth, which will eventually lead to poverty reduction too. Brazil should open free trade with developing countries like Pakistan, which enrich with natural resources and introducing technological innovation in all the field of like.