Title: THE IMPACT OF TRADE IN GDP PER CAPITA GROWTH IN 2018
Abstract: Nowadays, the dynamic of world economies and the economic relationships between countries have a high influence on economic growth.It is possible to say that the international trade impact in GDP is, for most economies, the main criteria for economic growth.Due to natural resources endowments, each country has its own specificity.There are many studies regarding the impact of exports and imports in GDP using time-series and econometrics methods.This study uses a combined methodology between data analysis and econometrics (principal components regression) in order to identify the impact that trade has on GDP per capita growth, taking into account the majority of world economies from 2018.The use of principal components analysis reduces very much the dimensionality of data (from 22 variables to 4 principal components) and helps with the multicollinearity problem, while linear regression is used to estimate the impact of trade in GDP per capita growth.The results of applying PCR method on all considered countries show a moderately influence of trade in GDP per capita growth that should not be overlooked when it comes to identify the main factors that influence the gross domestic product growth.