Power of Economy

Applicability of Openness-led Growth Hypothesis in Sri Lanka: An ARDL Bounds Test Navaratnam Ravinthirakumaran South Asia Economic Journal 15(2) 241–263 ©2014 Research and Information System for Developing Countries & Institute of Policy Studies of Sri Lanka SAGE Publications Los Angeles, London, New Delhi, Singapore, Washington DC DOI: 10.1177/1391561414548951 http://sae.sagepub.com Abstract An openness-led growth hypothesis investigates the causal relationship between trade openness1 and economic growth. Indeed, trade openness can stimulate economic growth by enhancing the international flow of knowledge and innovation and by allowing economies of specialization, not only in the production of goods but also in the generation of new knowledge and new inputs into production. The purpose of this article is to empirically examine an openness-led growth hypothesis, using the case of Sri Lanka for the period from 1965 to 2012. The article uses the recently developed autoregressive ...

Strengthening of key government agencies responsible for economic policy, planning, and public sector financial management, including the finance ministry, treasury, and central bank. Promoting more clearly defined property rights through legal and administrative reforms. Strengthening the banking sector and financial markets. Improving corporate governance by helping to establish appropriate legal, institutional, and regulatory frameworks. Supporting the development of micro-enterprises and small/medium enterprises. This can be done through a variety of means – for example, by helping the government create an appropriate regulatory environment, developing business skills and knowledge, and by promoting improved access to financial services and other business services. Improving delivery of basic services such as health, education, water, and sanitation, through the public and private sectors. Strengthening the rule of law and improving legal systems, including central regulatory bodie...