Impact of Trade Deficit on Economic Growth: A Case of some selected Countries

Abstract

Trade has a significant role in the economy and promotes economic growth. This paper expresses the relationship between the trade deficit and the economic development of some selected countries. For this purpose, we used a random-effects model to estimate the analysis. The outcome of the study indicates that trade deficit has a negative impact on economic growth. The study suggested that countries be more concerned about the trade deficit to minimize it for better performance and high economic growth.