Measuring and analyzing the impact of commodity trade and other variables in the economic growth of Singapore For the period (2000-2017)

Abstract

In the recent years, international trade has developed considerably. The growth of foreign trade has been much greater than the global output. International trade has doubled in developed countries, but to a lesser extent in developing countries, which has led to a rise in the economic growth index.

            The research aims to analyze and measure the impact of commodity Exerted and other variables in the economic growth of Singapore for the period (2000-2017(. The research found that increasing commodity trade (X₁) in one unit leads to increase economic growth (GDP) by (0.123). The increase of net foreign direct investment (X₂) in one unit leads to increase economic growth (GDP) by (0.410). The increasing the number of population (X₃) in one unit leads to increase economic growth (GDP) by (0.044). in the long-tem- relationship results showed  a positive relationship between the dependent variables (GDP) and independent (commodity trade, net foreign direct investment, population), In the case of the Kanger test of causality, commodity trade (X₁) causes the change in the Y variable. The Y variable causes the change in the independent variable X₁ when the relationship is two-way while the net foreign direct investment (X₂) (Y) causes the change in the dependent variable (Y). The dependent variable (Y) causes the change in the independent variable of net foreign direct investment (X₂) i.e. the relationship between them is two-way, the population X₃ causes the change in GDP, (Y) does not cause a change in the population.

            The study recommended the need to pay attention to commodity trade, diversify sources of production and export in Singapore, increase the volume of foreign investment in various economic sectors and work on the use of advanced means of communication in foreign trade, which contribute to reducing distances and time and contribute to increase the flow of goods and services