Impacts of Trade Openness on Inflation Stability of Asian Countries

This study assesses the impact of trade openness on economic stability using secondary data collected from the World Bank for 20 Asian countries. The study employs the Autoregressive Distributed Lag (ARDL) model to estimate the proposed research model. The findings indicate that trade openness has a negative impact on inflation stability in Asian countries. Based on these findings, the study suggests that governments should implement price management measures to control the prices of domestic goods and services. These measures may include monitoring and controlling prices, limiting unreasonable price increases, and strengthening investment management.