RELATIONSHIP BETWEEN FOREIGN TRADE AND ECONOMIC GROWTH IN THE COMOROS ISLANDS

Abstract

The relationship between foreign trade and economic growth is one of the most important research topics for decades. The
causality relationship between foreign trade and economic growth has been the subject of much debate in the empirical
literature. However, very few studies have been done in the case of the Comoros islands. In this context, the purpose of this
study is to examine the relationship between trade and economic growth in Comoros by using the annual Export, Import, and
Economic growth data for the period 1980-2016. The Granger causality test is used to achieve the purpose of the study.
According to Granger causality test results, it was found bi-directional causality between Export and economic growth in
Comoros islands. At the same time, it was revealed that there is a one-way causality from imports to exports. However, neither
exports nor economic growth is the reason for imports.