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Assessment of Commerce Potency on Economic Growth in Italy: Empirical Analysis

Bakari, Sayef and Saaidia, Fatma (2017): Assessment of Commerce Potency on Economic Growth in Italy: Empirical Analysis.

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Abstract

The link between exports, imports and economic growth in Italy has been extensively discussed by historiography. This paper investigates the relationship between exports, imports, and economic growth in Italy. In order to achieve this purpose, annual data were collected from the reports of the World Bank for the periods between 1960 and 2015, was tested by using Augmented Dickey-Fuller (ADF) stationary test, Co integration analysis of the Vector Auto Regression Model and the Granger-Causality tests. According to the empirical results, we found that exports and imports have not any effect on economic growth. Also, we discovered, according to the Granger-Causality tests that there is no any relationship of causality between trade and economic growth. However, and according to the results of the correlation analysis, we found that trade and economic growth in Italy are positively correlated, meaning that the strategy economic posing by Italy is not efficacious to solve economic problems.

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