Building A Model of Factors Affecting the Level of Trade Integration of Developing Countries

In intensified globalization, trade integration has become a strategic pathway for developing countries to foster economic growth, enhance competitiveness, and participate in global value chains. However, the level of trade integration varies significantly across nations, suggesting the influence of diverse internal and external factors. This study develops a comprehensive analytical framework to examine the determinants of trade integration in 40 developing countries across Asia and Africa. By applying multivariate regression analysis, the research identifies key macroeconomic, institutional, geographic, and structural variables that explain cross-country differences in trade openness. The results confirm an inverted U-shaped relationship between GDP per capita and trade integration and highlight the pivotal roles of institutional quality, financial development, macroeconomic stability, and manufacturing share in GDP. Geographic disadvantages and inflation are found to hinder integration. Based on these findings, the study proposes policy recommendations emphasizing institutional reform, financial inclusion, industrial upgrading, and regional infrastructure investment. The paper contributes to both theoretical and practical understandings of how developing countries can enhance their integration into the global trading system.