Abstract:

Countries are open more to the outside by liberalizing their trade with globalization; along with this opening, it increases the trade and interdependence between countries; this highlights the concept of globalization of trade. With the globalization of trade, as the interdependence between national economies increases, the national level is contained and transformed by the international level. Trade openness is one of the essential concepts that reveal the level of a country's relations with the world economy. As the trade openness increases, lower inflation may be possible with the implementation of controlled expansionary monetary policies and properly managed foreign trade. This study aims to examine the relationship between trade openness and inflation, in terms of its principles and geographical area, for Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey, which are known as D-8 countries, which have a global formation characteristic rather than a regional one. The analysis was carried out with panel cointegration tests with annual data, taking into account the 2000-2019 period. According to the analysis results, trade openness in D-8 countries is systematically and statistically significant on inflation.

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