free trade and inflation nexus in eight emerging economies of east asia

In this study, we are surveyed the effect of trade liberalizationon the inflation of eight precursor’s economy of east asiaduring 1990-2018. the main purpose of this research is to testthe romer (1993) hypothesis for aforementioned countries. hesays that there is a negative relationship between inflation andtrade openness. for testing this subject, we are used the britong(2000) unit root test for panel data and, the kao (1999) cointegrationtest for panel data. notice to existence ofnonstationary variables in the estimated model, we need to usethe kao (1999) co-integration test, and as a result of this test,there is a long run relationship between the variables of themodel. the results show that the romer (1993) hypothesis isconfirmed for these countries and free trade reducing theinflation in these countries. also, the effect of income percapita is negative but the liquidity volume coefficient showsthe positive effect of this variable on inflation in these set ofcountries. in consequence, trade liberalization policy cansuggest as a policy to declining inflation in these set ofcountries.