THE RELATIONSHIP BETWEEN FOREIGN TRADE VOLUME AND ECONOMIC GROWTH:PANEL DATA ANALSIS

Abstract

Today, foreign trade, the maintenance of the development of countries and countries in the world it is seen as one of the most important elements in the provision of integration. Particularly, in the economic development process of countries, the role of foreign trade in mobilizing internal dynamics is very much. Underdeveloped and developing countries, which want to benefit from the opportunities of globalization, aim to achieve significant gains through foreign trade and achieve successful growth performance. Countries use their foreign trade policies not only to integrate into the world economy, but also to direct their political relations with other country or country groups. The aim of this study is to determine the relationship between foreign trade volume (DTH) and growth (GDP) for the period of [2000.Q1-2017.Q4] for the fragile eighth countries with similar economic problems by means of panel cointegration and causality analysis. As a result of the analysis, there is a long-term positive relationship between DTH and GDP. In the causality analysis, bi-directional causality relationship was determined for all countries in the country group.