Economic Growth and International Trade: application from South Korea

Abstract: This paper pays much emphasis on the relationship between economic growth and international trade in South Korea. Via using the ordinary least square to perform an empirical analysis, Findings illustrate that the long-run, steady and equilibrium relationship among economic growth, import trade and export trade exists. And the empirical analysis results reveal that an increase in the economic growth will result in an increase in the import trade and export trade in South Korea. More importantly, the export-oriented economy has a very significant effect on economic growth. Also, the import trade not only promotes the economic growth but also promotes the export trade. As a matter of fact, the main purpose of this paper is to make relationship between economic growth and international trade clear for the policy-makers to take good measures when the economy falls into a recession such as global economic crisis in 2008.