Abstract

This paper studies the association between openness and growth for selected Muslim countries. The rational for conducting this study only on Muslim countries is to explore this relationship among economies having different religion, economic and social characteristics. This paper employed random and fixed effect model (RE & FE). Also, Pedroni and Kao Cointegration test is used to explore the long run relationship between openness and growth. The finding from Pedroni Cointegration test has indicated the long run relationship among variables. However, this long run relationship is absent in Kao Cointegration test. The results of RE and FE model have shown that openness has significant and positive effect on growth. In addition, foreign direct investment, inflation and human capital are also affecting growth in Muslim countries.

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