Analysis of the Role of Trade Openness in the Performance of Developing Economies a Case Study of Selected Southeast Asian Countries (2015–2024)
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Abstract
The study aims to analyze the role of trade openness in the economic performance of a selected group of developing economies in Southeast Asia—namely Indonesia, the Philippines, and Thailand—over the period 2015–2024. The research adopts a descriptive–analytical approach, without resorting to econometric methods, in order to clarify the nature of the relationship between trade openness and a set of economic performance indicators, including GDP growth, the volume of foreign trade, foreign direct investment (FDI) inflows, inflation, and GDP per capita.
The analytical results indicate that trade openness has contributed to supporting economic growth, enhancing export capacity, and attracting foreign investment during periods of relative stability. However, global crises—most notably the COVID-19 pandemic—have revealed the vulnerability associated with excessive reliance on the external sector. The study concludes with several key findings, the most important of which is that the Thai economy demonstrates a higher capacity to absorb shocks compared to Indonesia and the Philippines. Among the main policy recommendations for the Philippines is the development of a national industrial base that reduces dependence on imports and links trade openness with employment policies and technology transfer mechanisms.
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