Date of Award

5-2014

Document Type

Thesis

Degree Name

Master of Arts (MA)

Legacy Department

Economics

Advisor

Jerzmanowski, Michal

Committee Member

Simon , Curtis

Committee Member

Oliveira , Jaqueline

Abstract

In a modern economy, trade among people, firms, and countries is indispensable. There is also a close connection between the levels of trade and income and how they affect our standards of living. Many economists and policymakers believe in a virtuous circle: the more trade, the more income or vice versa. In order to see the relationship between trade and income, we investigated whether international trade affects the level of income. We analyzed international trades and incomes of eighteen countries in Western Asia Region in a period of 1950 to 2010. We used panel data with 687 observations. Our analysis showed that there is a positive relationship between international trade and income. A 1% increase in international trade between countries causes to increase in income by 1.57% on average. This increase is statistically significant at 1% significance level.

Included in

Economics Commons

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