Economic growth and International Trade. A Measurement of Exports Instability and its Effects on Development

The article explores the fundamental relation between economic growth and international trade. In addition, it analyzes the effects of export instability to financial growth. Based on the findings of the study is proved that there exists a long lasting relationship between exportinstability, income terms of trade instability, investment and economic growth. An effective strategy may contribute to governmental efforts in order to differentiate country’s international trade policy. In today's increasingly globalized world, exports and imports are key aggregates in the analysis of a country's economic situation. Whenever an economy slows down or accelerates, all other economies are potentially affected. Equally, imports reflect the same transactions from non-residents to residents. Not all goods need to physically enter a country's border to be recorded as an export or import. Transportation equipment, goods produced by residents in international waters sold directly to non-residents, and food consumed in ships or planes are but a few examples of transactions which may be recorded as exports or imports without physically crossing borders.