TITLE:
Do Burundi’s Exports and Imports Really Help the Country’s Economic Growth? —Burundi Case Study from 1978 to 2020
AUTHORS:
Niyongabo Carmel
KEYWORDS:
Burundi, Exports and Imports
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.2,
March
27,
2023
ABSTRACT: Background: Burundi’s imports are increasing every day and exports are not showing
real growth to cover the trade deficit, which can affect the country’s trade
balance and can cause slow down the country’s economic growth. Both exports and
imports have an influence on the economy as a result of foreign commerce.
Exports are regarded as a contribution to national income and the economy,
whereas imports are regarded as an outflow from the economy. According to the
research, exports have both direct and indirect beneficial benefits on the
economy, whereas imports have a negative direct impact on national revenue. Purpose: The goal of this research is to look at the influence of exports and
imports on Burundi’s economic growth. Case description: Using trade and economic growth theories as a guide, the quantitative
research technique was utilized to analyze yearly time-series data of trade and
economic growth reported as Gross Domestic Product (GDP), collected from World
Bank websites, from 1978 to 2020. Burundi’s exports, imports, and economic
growth were studied using econometric analysis and Ordinary Least Square linear
regression. Conclusion: According to the study’s findings, there is a positive significant
long-run causality between Burundi’s GDP, exports, gross capital formation, and
exchange rate factors, while imports in the long-run doesn’t affect GDP. A
one-percentage-point increase in export values causes GDP to rise by 0.24
percent, whereas a one-percentage-point increase in imports causes GDP to rise
by 0.31 percent.