Research Article Open Access

International Trade and Its Impact on Economic Growth

Abstract

International trade in recent decades has considerable growth, so that world trade of goods has exceeded 9 trillion U.S. dollars per year. It is evident that most conducted traded in this area is associated with monetary and financial system and many banks and financial institutions do financing the exchange of goods and services. Over the past years, we have been witness gradual development of integrated global economic system. After Second World War, international trade has faster growth so that in recent years world trade growth has been faster than world production. In the meantime, the share of developing countries in international trade has been more growing than total trade. Foreign trade and its relationship with economic growth is one of the highly controversial issues in particular, the choice of development strategies in developing countries and still there isn't accord among economists for how relationship between trade policies and economic growth. More economists believe that trade is the engine of development in modern societies. They claim that international trade creates possible of benefiting from the potential economic empowerment, according to available relative advantages and reveals clear signs for investment in the lucrative economic projects in the global arena. Also, international trade will be affected growth rate of the economy through access to foreign markets, technology and resources.

Emad Shafiei

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