Acknowledgement

Trade openness

Because of the role played by investment in trade through FDI-driven export expansion, as well as the effect of trade on investment, the interaction between FDI and trade can be explained in two ways: either by the effect of trade on investment through the development of related programs abroad and the adoption of a more liberal trade policy framework as a result of export expansion, or by the interaction between FDI and trade (Petrit, 1994; Katseli, 1992; Sakyi & Egyir, 2017). As a result, the relationship between these two phrases might be misleading since it can refer to either a substitute or a complementing impact in this situation. Mundell (1957) identified the former impact, describing how foreign direct investment (FDI) and international commerce (trade) may function as a demand determinant and a driver of investment.

Labor Participation rate

Spencer and Denton (1997) analyzed population, labor force, and long-term economic growth. They used the trend analysis method. They discovered that the majority of the Canadian population is aging. Their ages exceed 65 years, and their population growth rate has also dropped, owing mostly to low fertility rates, with additional declines expected if immigration remains at current levels. The Canadian population's labor-force participation has likewise decreased. The Canadian economy is now heavily reliant on immigration for workforce expansion. Duval, Eris, and Furceri (2010) discovered labor force participation hysteresis in developed countries: Evidence and explanations. The impulse-response function technique was utilized to determine the extent of the influence of labor force participation on the manufacturing industry. They utilized sampling data from 30 nations spanning the years 1960 to 2008. Their findings, however, suggest that unfavorable economic shocks have long-term repercussions on aggregate labor participation. Their findings also show that, if merely due to batch effects, partial participation hysteresis would be predicted.