<p>This study synthesizes empirical evidence (2015–2025) regarding the impact of economic openness on economic growth across income levels, identifying key transmission channels and controlling factors. Following the PRISMA guidelines, this systematic review analyzed over 70 peer-reviewed articles. A thematic matrix systematizes discoveries by income level and transmission channels, such as trade, FDI and technology spillovers, financial flows, and human capital. The results demonstrate significant heterogeneity, indicating that upper-middle-income countries experience an “endogenous Feedback Loop” while high-income gains are modest. In lower-middle-income nations, FDI is often more critical than that of trade. Evidence for low-income countries remains inconclusive, requiring structural foundations to avoid negative effects. Effective technology transfer is contingent on a human capital threshold index of 0.7919. Limitations include small sample sizes in low-income regional studies and the risk that large technology gaps may exceed the local absorptive capacity. Policymakers should reject “one-size-fits-all” liberalization and sequence reforms to prioritize human capital, infrastructure, and institutional quality before aggressively opening markets. Economic openness drives human capital investments and labor mobility. Digital financial inclusion is a transformative tool for empowering underserved populations and integrating enterprises into global trade. This review offers a contemporary post-2015 synthesis that maps specific transmission channels to income groups and highlights inclusive and digital financial adoption.</p>

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Economic openness growth nexus across countries of different income levels: a systematic review

  • Yohannis Bekele Kemiso

摘要

This study synthesizes empirical evidence (2015–2025) regarding the impact of economic openness on economic growth across income levels, identifying key transmission channels and controlling factors. Following the PRISMA guidelines, this systematic review analyzed over 70 peer-reviewed articles. A thematic matrix systematizes discoveries by income level and transmission channels, such as trade, FDI and technology spillovers, financial flows, and human capital. The results demonstrate significant heterogeneity, indicating that upper-middle-income countries experience an “endogenous Feedback Loop” while high-income gains are modest. In lower-middle-income nations, FDI is often more critical than that of trade. Evidence for low-income countries remains inconclusive, requiring structural foundations to avoid negative effects. Effective technology transfer is contingent on a human capital threshold index of 0.7919. Limitations include small sample sizes in low-income regional studies and the risk that large technology gaps may exceed the local absorptive capacity. Policymakers should reject “one-size-fits-all” liberalization and sequence reforms to prioritize human capital, infrastructure, and institutional quality before aggressively opening markets. Economic openness drives human capital investments and labor mobility. Digital financial inclusion is a transformative tool for empowering underserved populations and integrating enterprises into global trade. This review offers a contemporary post-2015 synthesis that maps specific transmission channels to income groups and highlights inclusive and digital financial adoption.