Modern theoretic approaches to the analysis of the relatoinship between international trade and economic growth

Abstract

The modern and the most influential theoretical approaches of the relationship between international trade and economic growth are analysed. This relationship can serve as an explanation of a rapid economic growth in those countries that liberalized their foreign trade regimes. It is shown how, in accordance with current studies, the impact of foreign trade on gross domestic product is determined. Particular attention is focused on endogenous models as those that accumulate the most advanced research in the field of trade and economic growth. The basic mechanisms of the impact of international trade on economic growth are identified. The main sectors of the economy, which, after the opening of markets, are most impacted by international trade are singled out and the potential impact of liberalization on the economy as a whole is determined.