Studying the Impact of Foreign Trade on Economic Growth of Afghanistan during 2003-2021

Abstract

In this research, the effects of import and export in foreign trade on the economic growth of Afghanistan during the years 2003 to 2021 have been studied. The import and export data were used from official reports of the Ministry of Trade and Industry Afghanistan, and the information related to economic growth was obtained from the World Bank website. The methodology is a multivariate regression model, which is used to estimate the parameters of the model by Ordinary Least Squares methods which were impossible; the problem of their unit root was solved by difference. Results show that there is no significant relationship between Afghanistan's economic growth and foreign trade, and the reason for the lack of correlation between the variables of foreign trade and economic growth may be the low volume of imports and exports of the Afghanistan economy, and on the other hand, economic growth of Afghanistan have the high dependence of foreign aids in the last 18 years.