The Economic Growth of the Andean Community of Nations and International Trade between 1990 and 2022
DOI:
https://doi.org/10.51325/ejbti.v1i2.167Keywords:
Economic Growth, Foreign Trade, Exports, Imports, Purchasing Power of Exports, Terms of Trade.Abstract
The objective of this research is to determine the influence of foreign trade indicators on the economic growth of the countries within the Andean Community of Nations (ACN), which includes Colombia, Ecuador, Peru, and Bolivia. The study analyzes the impact of various foreign trade indicators, specifically Exports, Imports, the Purchasing Power of Exports, and the Terms of Trade, on economic growth. The analysis covers the period from 1990 to 2022. The econometric technique employed is the Panel Model, with results indicating that the POOL panel model best explains the behavior of these indicators in relation to economic growth. The findings reveal that exports increase the regional product by 0.2546%, while imports contribute a significant 0.8657% increase. Conversely, the persistent deterioration in the Purchasing Power of Exports reduces the regional product by 0.6511%. Additionally, an improvement in the Terms of Trade enhances the product by 0.2426%.
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