Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
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Revisiting the Nexus of Trade Openness and Economic Growth: A Focus on the Moderating Role of Port Infrastructure

  • Lee, Jae-Ho (Institute of Foreign Trade, Sungkyunkwan University) ;
  • Pak, Myong-Sop (School of Business, Sungkyunkwan University)
  • Received : 2021.10.29
  • Accepted : 2021.12.10
  • Published : 2022.04.30
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Abstract

Purpose - Multiple stakeholders-including politicians, investors, and the wider public-have questioned the value of investing in port infrastructure improvements and the contributions they can make to economic performance. Design/methodology - This paper presents an empirical study of 56 countries with seaports from the year 2006 to 2019 to determine how the quality of port infrastructure affects its contribution in terms of trade openness and economic growth. To this end, this study applies hierarchical multiple regression analysis with panel data to empirically examine the economic impact of port infrastructure quality on the relationship between trade openness and economic growth. After the 56 selected countries were categorized as developed or developing, a multi-group panel data analysis was conducted. Findings - The results of this study show that trade openness has a significant positive effect on the national economy. The findings also indicate that, although developing countries should expect greater economic growth after investing in port infrastructure, this relationship weakens as developing countries become richer. Originality/value - The findings of this study not only elucidate the relationship between trade openness and national economic growth, but they also emphasize the importance of trade openness and port infrastructure in national economic growth, particularly among developing countries.

Keywords

Acknowledgement

This work was supported by the Postdoctoral Research Program of Sungkyunkwan University (2021).

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