Conference Title: International Conference in Business,Technology and Innovation 2013
Conference Title: UBT Publications
Contributing Editos: Prof. Albert Qarri, Prof. Ibrahim Krasniqi, Krenare Pireva, Evelina Bazini, Nita Abrashi
Co-Organizers: Ardian Emini, Vlora Aliu, Betim Gashi, Xhemajl Mehmeti, Kushtrim Dragusha, Murat Retkoceri, Kaltrina Bunjaku, Leonita Braha
Start Date: 2013-11-01
End Date: 2013-11-02
Venue, City, Country: : Hotel Bleart , Durres , Albania

Paper Title

An Empirical Analysis of the Effects of Foreign Trade on Economic Growth: An Evidence for South East European Countries


Merale Fetahu , Luljeta Sadiku , Raman Ismaili


The empirical literature suggest that foreign trade has a positive contribution to economic growth in the most of developing countries. South East European countries have experienced an extension of international trade during the last decade. Therefore the purpose of this paper is to analyse empirically the effects of foreign trade on economic growth of the sample countries as well as to examine the heterogenity across countries and years. Econometric approaches are applied based on 16- year panel data of 8 SEE countries from 1996 to 2011. The estimation results indicate significant positive effect of terms of trade on economic growth. Trade shares, export shares and import shares in GDP are found to be significantly and positively correlated with growth.