The Influences of International Trade on Sustainable Economic Growth: An Economic Policy Perspective

Abstract

This study uses the Gregory–Hansen cointegration method and the vector error correction model in the vector autoregression system to reveal how international trade contributes to economic sustainability. The Gregory–Hansen test for cointegration method reveals a permanent equilibrium relation among sustainably economic growth, exports, and imports and shows that exports facilitate GDP growth and accelerate improvements in the capability of imports in the long-run. The causality between GDP and exports is unidirectional, indicating that exports area determinant of sustainable economic growth. The bidirectional causality from imports to GDP also sheds light on the important influence of imports on economic sustainability; however, GDP growth also drives import growth. The interaction between imports and exports corresponds to their bidirectional causal relationship, which is indicative of imports contributing to export production and of export growth expanding the capacity for imports. This finding indicates that imports are both exogenous and endogenous factors for exports.

The Sustainability of International Trade: The Impact of Ongoing Military Conflicts, Infrastructure, Common Language, and Economic Wellbeing in Post-Soviet Region

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“…However, efforts to address the VAT Gap through economic growth also pose their own challenges. Economic growth (GDP growth) directs a country toward international trade (Ji et al, 2022;Rahman, 2021). International trade (Trade Openness) increases opportunities for tax violations due to the complexity and scale of trade transactions (Kitsios et al, 2020).…”

Research on Grading and Evolution of International Trade Development Quality of City Clusters Based on Logit-ISM Modeling

“…Kang, I. et al proposed a model for evaluating affective policy performance, analyzed structural equation measurement data through structural equation modeling methodology, and revealed that policy implementation by firms is the most effective resource to encourage firms' international trade policy adoption [19]. Ji, X. et al used the gregoro -hansen fusion method and vector error correction model in vector auto-correction model to reveal how international trade contributes to the sustainability of the economy, showing that exporting contributes to GDP growth and accelerates the improvement of import capacity in the long run [20]. Yan, B. R. et al et al combined logistics risk influencing factors to establish the index system and evaluation model of international logistics risk [21].…”