The Effects of International Trade on Trade Balance in Congo Brazzaville: A Comparative Analysis

Embracing the Dragon: Ethnic Diversity among Staff of Public Universities in Kenya
May 7, 2020
The Influence of Strategy Content on Strategy Implementation among Primary Cooperative Societies in Nairobi City County, Kenya
May 7, 2020

The Effects of International Trade on Trade Balance in Congo Brazzaville: A Comparative Analysis

ABSTRACT:- This research aims mainly at examining the effect of international trade on the trade balance in the Republic of the Congo. Data on export-import products and trade balance between China and the Congo are monthly time series data stretching from January 2012 to April 2019, over 88 observations were analyzed by using the SPSS statistics 25. The results of multiple linear regression (MLR) model show that export products have a positive effect on the Congolese trade balance, while import products have negative effects except for imports of electrical machines, which positively affect Congo’s trade balance in the period spanning 2012 to 2019. Economic theory states that the trade balance equals exports minus imports. The results obtained in our study show that the majority of the variables have the expected signs: the exports of crude oil and raw wood are positive which obeys to the economic theory so that the balance of trade is surplus or at least balanced, whereas the Signs of import results are a bit mixed as imports of iron items, textiles, and wood items have negative signs but imports of electrical machinery have a positive sign.

Keywords:- Congo Brazzaville, exports, imports, Multiple linear regression, trade balance

error: Content is protected !!