Trade Balance Effects on Economic Growth: Evidence from European Union Countries

Blavasciunaite, Deimante; Garšvienė, Lina; Matuzevičiūtė, Kristina

doi:10.3390/economies8030054

Cited by 43 publications

(35 citation statements)

References 34 publications

(66 reference statements)

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“…Trade balance rise by one percent results in approximately 0.8 percent fall in growth (segment one) and a one percent rise in trade balance results in approximately 0.7 percent fall in growth (segment two). This is also in line with studies by Blavasciunaite et al (2020); Mohammad and Sherif (2015). This also implies that though the volume of trade in West Africa may have increase over the years, however, growing trade deficits act as a drag on the economy particularly when the deficits are as a result of increase imports of consumer goods that can be produced domestically which is often the case with most countries in West Africa owing to weak productivity base.…”

Section: Model Estimation Resultssupporting

confidence: 92%

Remittances, Trade Balance and Economic Growth in West Africa Sub-region

Izevbigie

Arodoye

Omo–Ikirodah

2022

Sriwijaya Int. J. of Dynamic Eco. And Buss.

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The impacts remittances and trade balance has on growth in West Africa sub-region was examine for the period 2007 to 2019. To this end, based on relevant theory a model was drawn. However, prior to estimation, reliability and validity of the data set was examined. This was followed by unit root test which shows that all variables attained stationarity at their first difference while Cointegration test indicated that there exists a long-run convergence among the variables. System Generalised Method of Moment estimation revealed that remittances inflows significantly and positively impact economic growth while trade balance exerted a negative and significant impact on economic growth. The over-identifying restrictions test of J-Statistics revealed that the instrument of measurement employed was valid. It was recommended among others that policy makers in West Africa should implement policies that continually encourage remittances inflow to the sub-region while ensuring that trade deficits emanates from productive investment.

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Section: Model Estimation Resultssupporting

confidence: 92%

Remittances, Trade Balance and Economic Growth in West Africa Sub-region

Izevbigie

Arodoye

Omo–Ikirodah

2022

Sriwijaya Int. J. of Dynamic Eco. And Buss.

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“…Revealed positive effect of net export growth on the economic performance corresponds with the findings of Cetin (2016) and Awokuse (2007), but it is contradicted by results in other EU countries, as Blavasciunaite et al (2020) discovered.…”

Section: Verification Of Research Hypotheses and Discussionsupporting

confidence: 55%

“…It was found that the growth rate of the volume of trade is positively related to a growth rate of per capita GDP and both international trade volume and trade structure toward high-tech exports result in positive effects on China's regional productivity. Trade balance effects on economic growth in European Union countries were analyzed by Blavasciunaite et al (2020) using the OLS method of multivariate regression analysis. The results indicated the negative impact of a trade balance on economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of Foreign Trade on the Economic Performance of Industries—Evidence from Wood Processing Industry of Czechia and Slovakia

et al. 2021

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As was first stressed by the classical economists Adam Smith and David Ricardo, international trade plays a crucial role in the growth process. The paper aims to analyze the influence of foreign trade on economic performance in the wood processing industry (WPI) of Czechia and Slovakia. The multivariate regression method (MLR), assumption tests for MLR models, and Granger causality test were applied to identify association between foreign trade economic performance, and indicators were formed to measure the effects of foreign trade at the industry level. The Granger test revealed the unidirectional causality in the Slovak WPI and bidirectional causality in the Czech WPI. The results revealed that the net export growth has a positive effect on the economic performance of the industry, but only if the growth in imports is lower than in exports. The balanced trade balance indicated no influence of foreign trade on economic performance. The paper contributes to existing knowledge with indicators for evaluation of foreign trade effects on the performance of the industry. The paper also brings new empirical knowledge in trade balance effects on the economic performance of industries.

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“…Understanding the primary commodities and characteristics that stand out; 3) Measuring changes in the prices of primary commodities before and after the pandemic in Kalimantan Barat. This issue is significant to study because a trade balance surplus or deficit can affect economic growth in a region (Blavasciunaite et al, 2020). The results of this study will be helpful for the Kalimantan Barat local government notice policies that will impact Kalimantan Barat's economic growth and the steps that need to be taken to continue improving Kalimantan Barat's trade balance performance.…”

Section: Introductionmentioning

confidence: 94%

“…The value of imports and exports of non-oil and gas has a significant adverse impact on the volatility of foreign exchange reserves (Asyaria, Budiantoro & Herianingrum, 2020). The characteristics of trade balance have shown a link to economic growth (Blavasciunaite, Garsviene & Matuzeviciute, 2020), exports, imports, and economic openness significantly affect Human Development Index (Azzaki, 2021).…”

Section: Introductionmentioning

confidence: 99%

Behind Trade Balance Surplus in Kalimantan Barat Amidst Covid-19 Pandemic

Fatmawati

2021

JEBIK

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This study aims to determine general exports/imports structure, find the commodities and their salient characteristics, and measure changes in primary commodities price during the pandemic in Kalimantan Barat. The data used is Kalimantan Barat's export and import from Statistics Indonesia over January 2019 - June 2021 through descriptive analysis method and Fisher Index unit value. The results explain that three primary export commodities are bauxite, palm oil, and rubber. Bauxite and natural rubber were shocked by the pandemic, but palm oil can still hold. The government encourages downstream activities for bauxite and palm oil to produce value-added products, while rubber pays more attention to upstream quality. The contribution of exports is relatively significant to affect economic growth with the downstream process performed by the government; tremendous added value can be seen in palm oil commodities. Imports are beneficial because they add intermediate materials to support industrial processes. The recommendation is that local governments continue intensive monitoring and evaluation of smelter construction even during the Covid-19 pandemic, concentrate on the grade of palm oil downstream for its sustainability, and improve rubber trading system and capacity building for rubber extension officers to provide adequate guidance to rubber farmers.JEL : F10, F19, F40. Keywords: trade balance, export, fisher index, downstream, descriptive statistics, covid-19. ABSTRAKPenelitian ini bertujuan untuk mengetahui gambaran umum struktur ekspor/impor; mengetahui komoditas utama dan karakteristik yang menonjol; serta mengukur perubahan harga komoditas utama selama pandemi di Kalimantan Barat. Data yang digunakan adalah data ekspor dan impor Kalimantan Barat yang dikumpulkan oleh Badan Pusat Statistik selama periode Januari 2019 - Juli 2021 dengan analisis deskriptif dan Indeks Fisher. Hasil penelitian menjelaskan bahwa neraca perdagangan masih didominasi oleh aktivitas ekspor. Tiga komoditas ekspor utama adalah bauksit, minyak sawit dan karet. Pemerintah mendorong kegiatan hilirisasi pada komoditas bauksit dan kelapa sawit untuk menghasilkan produk bernilai tambah, sementara komoditas karet justru lebih memperhatikan kualitas hulu. Kontribusi ekspor sangat mempengaruhi pertumbuhan ekonomi dengan proses hilirisasi yang dilakukan oleh pemerintah, nilai tambah yang sangat besar terlihat pada komoditas minyak sawit. Aktivitas impor juga sangat menunjang perekonomian, selama impor yang dimanfaatkan adalah bahan baku penolong untuk mendukung proses industri. Oleh karena itu disarankan untuk pemerintah daerah agar tetap melakukan pengawasan dan evaluasi secara intensif berkala terhadap progres pembangunan smelter meskipun di masa pandemi Covid-19, memperhatikan kualitas produk hilir minyak sawit agar dapat terus berkelanjutan, memperbaiki tata niaga karet serta meningkatkan kualitas penyuluh karet agar tepat sasaran dalam melakukan pembinaan kepada petani karet.

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Trade Balance Effects on Economic Growth: Evidence from European Union Countries

Cited by 43 publications

References 34 publications

Remittances, Trade Balance and Economic Growth in West Africa Sub-region

Remittances, Trade Balance and Economic Growth in West Africa Sub-region

Effects of Foreign Trade on the Economic Performance of Industries—Evidence from Wood Processing Industry of Czechia and Slovakia

Behind Trade Balance Surplus in Kalimantan Barat Amidst Covid-19 Pandemic

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