Trade Liberalization and Economic Growth in Guyana: An Empirical Assessment using DOLS and Error Correcting Methodologies

In: The review of black political economy: analyzing policy prescriptions designed to reduce inequalities, Volume 43, Issue 1, p. 57-67

Abstract

This paper uses econometric techniques in the area of time series analysis to examine the relationship between economic performance and trade liberalization in Guyana. For this study, the base model underlying the analysis is a traditional per worker production function that has been augmented to include trade liberalization and other factors like human capital and exports. The results from this study suggest that when viewed from the long-run and short-run perspective trade liberalization has enhanced the economic performance of Guyana. Indeed, in this study both measures of trade liberalization - the average import tariff rate and the dummy variable representing the change in quota and import licensing measures, among other things - were statistically significant and correctly signed.