Since policy makers of Myanmar regard trade as a tool for economic development and poverty reduction, they are transforming nation’s economy into one that addresses higher growth through improved trade openness. This thesis analyze the effect of trade openness in economic growth in the case of Myanmar by using annual time data set from 1990 to 2014 and OLS regression model is applied in the study. The economic growth is measured by real GDP and the share of trade in GDP (exports plus imports divided by GDP) is taken as the measure of trade openness instead of other openness measures. FDI and inflation rate are also put into the model as control variables. The empirical evidence indicates that trade openness negatively effects on economic growth (GDP) of Myanmar due to the low share of trade in GDP, non value-added or low quality export products and low capacity in export diversification in term of products and market and the long run effect of inward oriented economy. FDI has positive impact on the country’s economic growth. However, the effect of inflation is not significant in 5% but it is significant in 10% critical value and the relationship is positive. In order to boost economic growth through trade, the government of Myanmar needs to accelerate economic reforms through trade liberalizations for more open, transparent and favorable business environment.
