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Determinants of the Country's Involvement in International Trade

Student: Iamaleeva Aleksandra

Supervisor: Elena V. Rozhentsova

Faculty: Faculty of Economics, Management, and Business Informatics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2017

International trade is a global sphere for study, however there exists a small number of research connected with the separate analysis of the factors that determine a country’s involvement in the international trade. This is a not completely solved area of the international trade but its development is not less important. This paper is going to expand the study of this gap. Cross-sectional data on 134 countries of the world for 2015-2016, is used. At the first stage of the research, the generalized model of involvement is analyzed. At the second stage, the countries’ classification method by UNCTAD to developed, developing and transition economies, is employed. The aim is to take into account the features of the countries and to conduct a more accurate analysis. The least squares method was used in the models’ estimation. By the results of the analysis, both positive and negative influence factors on the countries’ activity in the world trade, were identified. Key words: international trade, determinants of country's involvement in international trade, country classification.

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