THE RELATIONSHIP BETWEEN THE FOREIGN TRADE VOLUME AND ECONOMIC GROWTH: BRICS COUNTRIES

BRICS ÜLKELERİ ÖRNEĞİ

Abstract

Economic growth and development represent an important process in developing countries. 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. The development of foreign trade will influence competition and increase employment and labor productivity through the advancement of technology by increasing competition. Foreign trade is the key in this process in terms of improving the social and economic structures of the countries' exchange with each other and ensuring the level of prosperity. The aim of this study is to determine the relationship between foreign trade volume (FTV) and growth (GDP) for the period 2010.Q1-2018.Q4 with similar economic problems with the help of panel cointegration and causality analysis. As a result of the analysis, there is a long-term positive relationship between FTV and GDP. In the causality analysis, bi-directional causality relationship was determined for all countries in the country group.