Trade Integration and Economic Well-being: Evidence from Generalised Methods of Moments (GMM) in the D-8 Countries

This paper contributes to the trade–development nexus by investigating link between trade integration and economic well-being in developing eight (D-8) countries comprising Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkiye. Essentially, this examined how openness, financial exchange rate contributed gross national income (GNI) per capita (a proxy for well-being). The panel data obtained from United Nations Conference on Trade Development (UNCTAD), World Bank’s Indicator (WDI), Chinn-Ito index 2005 2021 were analysed using two-step generalized method of moments (GMM), unit root, Rao cointegration, among others. Evidence a long-run relationship variables was established Kao cointegration test results at 5 cent significance level. suggests that has forecasting ability D-8 countries. GMM revealed openness significantly enhanced finding explains cross-border members plays substantial role improving standard living population. Similarly, showed as degree grew, improved significantly. However, further depreciation had an insignificant negative effect well-being. Given findings, recommends policymakers should synergise implement non-restrictive policy, gradually collapse barriers promote stability create more opportunities development.