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Examining the Degree of Foreign Trade Dependence and Its Influence on GDP Growth

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  • Senija Nuhanović
  • Mirnesa Baraković Nurikić

Abstract

Contemporary international economic environment registers an increasing relationship and interdependence of countries regardless of the degree of their development. In the open economy, the development of foreign trade mainly implies the growth of gross domestic product (GDP). The basic goal of this paper is to examine the influence and effects of trade dependence on GDP. Trade dependence is used to describe a country for which exports and imports are very important. This coefficient also shows the degree of national economy openness. The analysis included the area of Bosnia and Herzegovina for the period 2010-2018, whereby the relevant statistical data were processed for export, import, GDP, as well as the selected coefficient of foreign trade dependence. The results showed the existence of a short-term or long-term relationship between GDP and the total export and import, as well as between GDP and export.

Suggested Citation

  • Senija Nuhanović & Mirnesa Baraković Nurikić, 2021. "Examining the Degree of Foreign Trade Dependence and Its Influence on GDP Growth," International Business Research, Canadian Center of Science and Education, vol. 14(4), pages 1-71, April.
    • Handle: RePEc:ibn:ibrjnl:v:14:y:2021:i:4:p:71
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    References listed on IDEAS

    as
    1. Michaely, Michael, 1977. "Exports and growth : An empirical investigation," Journal of Development Economics, Elsevier, vol. 4(1), pages 49-53, February.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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