An Empirical Analysis on U.S. Foreign Trade and Economic Growth

This study used data ranging from 1960–2010 in order to test the relationship between U.S. foreign trade and its economic growth. The Granger Causality Tests show that there exists a bi-directional relationship between American exports and its GDP, while exists only a single directional relationship between American imports and its GDP. It indicates that American imports didn’t Granger cause American GDP growth. That is to say, even if taking several measures to protect and reduce its imports, U.S. can not achieve the goal of promoting its economic growth.