International Trade and Economic Growth: Evidence from Singapore

International Trade and Economic Growth: Evidence from Singapore Clarence Jun Khiang Tan One of the frequently cited, though hotly contested, determinants of economic growth is exposure to international trade. This study focusses on Singapore, a country with high per capita GDP growth rates and high trade exposure to explore the relationship between these two variables. I use a cross-country dataset to gain initial insight into the trade-growth relation, then use Singapore time series data covering the period 1965 2009 to look at how Singapore’s trade exposure has contributed to its economic growth. I find some support that trade exposure has led to increased growth for Singapore. Other important determinants of growth include educational expenditure, inflation, and technological progress.