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DETERMINING ECONOMIC GROWTH WITH TRADE FLOW ANALYTICS
Abstract – This paper seeks to examine studies that have been conducted mainly in the period of 2015 to 2017 with regards to the analysis of trade flows in understanding their relationship with economic growth. Most studies examined causality relationships and employed co-integration tests and the Augmented Dickney-Fuller (ADF) model. The studies provided evidence that a relationship existed between trade flows and economic growth and this relationship was either bidirectional or unidirectional and existed both in the short-run and long-run depending on other factors other than trade flows. Other studies sought to compare statistical methods to determine which model produced statistically significant results in explaining and predicting trade flows with regards to economic growth.
Index Terms – Trade flow analytics, Economic growth, Gross Domestic Product (GDP)