The Effect of International Trade on Economic Growth

Andrii Oliinyk

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Meng, Chen  

Abstract:

With a focus on how trade openness helps long-term economic development,this study looks at the relationship between global commerce and economic growth.Countries can expand market access, improve production efficiency, and specializeaccording to comparative advantage through international trade. This study explores theconnection between exports, imports, and GDP growth in both developed anddeveloping nations. The results suggest that countries with higher trade openness oftenexperience faster economic growth because of increased foreign direct investment,productivity gains, and technology transfer. However, international trade does not affectgrowth the same way in every country. Whether trade leads to positive growth outcomesdepends heavily on several factors, including infrastructure, human capital, institutionalquality, and overall economic stability. Economies that rely heavily on primary exportscan sometimes face instability and unequal income distribution. Overall, the studyconcludes that while foreign trade can strongly support economic growth, additionaldomestic policies are needed to ensure its benefits are sustainable and fairly sharedacross society over time and across social and economic groups.