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Symmetric and Asymmetric Impact of Trade openness, financial development on Economic Growth in Ireland: New Evidence                     

Nader Al zabadi   

Mohammad Sharaf

Keywords:  Financial development, Trade Openness, Economic growth, NARDL, Ireland

Published                    2026-08-01

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Abstract :  This study aims to explore the symmetric and asymmetric impact of trade openness and financial development on Irish economic growth. Annual data covering the period 1981–2023 were used, using both linear autoregressive distributed lag ARDL and nonlinear autoregressive distributed lag NARDL. The results of the ARDL test for the symmetric impact in the long and short run showed that trade openness and financial development have a negative impact on economic growth. Regarding the asymmetric impact, the results of the NARDL test showed that the impact of positive and negative shocks in trade openness on economic growth in the long and short runs is asymmetric, positive shock has positive impact on economic growth in the long run, but negative impact in the shot run, while negative shock has negative impact in the long and short run. The positive and negative shocks in financial development in the long and short run are symmetric, meaning that positive shocks are equivalent to negative shocks.

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