Impact Of Trade On Economic Growth: A Case Of Singapore

Fluturim Saliu

Abstract


This paper examines the effect of trade on economic growth in Singapore and specifically the contributions of trade volume, foreign direct investment (FDI) and trade openness. The research follows the econometric specification via OLS and Random Effects Panel Regressions determining the effects of these variables on GDP growth empirically. The results indicate that FDI and level of trade have significant positive impact on economic performance of Singapore and there is relevance of strategic trade policies and capital flows. The paper also points at the challenge brought about by the trade imbalances as well as the fact that there is a need to introduce policy interventions that will address trade diversification, deficit reduction, and human capital advancement. The paper would help deepen knowledge on how empirical evidence can be used to make a linkage with policy-oriented knowledge in terms of how an open economy, such as that of Singapore, can continue to grow within the globalized economic environment.


Keywords


Trade Volume, Foreign Direct Investment (FDI), Economic Growth, Singapore, Trade Policy, GDP, Panel Regression, Trade Imbalance, Open Economy, Export Diversification.

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v53.2.7560

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