Online ISSN: 2519-9730 | Print ISSN: 2523-0565
Volume 3 Number 7 July 2018
Trade Flows and Economic Growth Between Countries – Members of the European UnionPages: 78-85
Zavou Argyro, Anastasiou Athanasios, Liargovas Panagiotis, Dermatis Zacharias, Komninos Dimitrios
The causal link between trade and economic growth has attracted the researchers’ attention both theoretically and empirically. In this paper, it is investigated the causal relationship between exports and economic growth as well as the impact of other relevant macroeconomic variables such, imports and public debt. More specifically, we examine the causality between the logarithms of real GDP per capita, real exports, real imports and public debt in 28 European Union Countries from 2004 to 2014 (annual data) by using the method of panel data estimation. The results of panel data estimation indicate the presence of causality from both exports and imports to economic growth. Our empirical model provides forceful evidence in support of the export-led growth and import-led growth theory in EU-28 countries.