Volume 07 Issue 05 May 2024
1HuiChen Chiang, 2Keniesha Emily Williams
1,2Ming Chuan University, Taiwan
DOI : https://doi.org/10.47191/ijsshr/v7-i05-85Google Scholar Download Pdf
ABSTRACT
The objective of this research is to examine the impact of trade deficits on Belize and the relationship between trade deficits and factors that influence economic growth. In this study, the trade deficit is the dependent variable. The economic factors, which are the independent variables, include Gross Domestic Product (GDP), Foreign Direct Investment (FDI), Inflation, Agriculture, and Tourism. This research is beneficial in understanding the impact of trade deficits in developing countries. It is particularly important because studies on trade deficits and developing countries are available, but studies specifically about Belize and trade deficits are scarce. This research fills a gap in the literature and explores an under-researched area. The findings indicate that (i) Trade Deficit impacts GDP and Inflation, and (ii) Trade Deficit is not correlated with FDI, Agriculture, and Tourism.
KEYWORDS:Trade Deficit, Gross Domestic Product, Foreign Direct Investment, Inflation, Agriculture, Tourism
REFERENCES1) Badu-Prah, C., Agyeiwaa-Afrane, A., and Gidiglo, F.K., (2023). Trade, Foreign Direct Investment and Agriculture in Developing Countries. Research on World Agricultural Economy, 4(3), 861.
2) Balassa, B., (1981). The Newly-Industrializing Developing Countries after the Oil Crisis. Weltwirtschaftliches Archiv, 117 (1), 142–94.
3) Belize Chamber of Commerce and Industry Web ., (2019). Trade in Services: Tourism. Retrieved from https://www.belize.org/trade-investment-zone/trade-in-services/
4) Belize Tourism Board., (2024). Belize Tourism History. Our History is the Foundation for our Future. Retrieved from https://www.belizetourismboard.org/belize-tourism/belize-tourism-history/
5) Belize Tourism Board., (2016). Travel Guide. Retrieved from https://belizetourismboard.org/wp-content/uploads/2016/04/TRAVELGUIDE_2016_WEB_BTB2.pdf
6) International Trade Administration., (2024). Belize - Country Commercial Guide: Agriculture and Agro-Processing. Retrieved from https://www.trade.gov/country-commercial-guides/belize-agriculture-and-agro-processing
7) International Trade Administration., (2024). Belize - Country Commercial Guide: Travel and Tourism. Retrieved from https://www.trade.gov/country-commercial-guides/belize-travel-and-tourism
8) Lawal, E.O., and Ezeuchenne, K., (2017). International Trade and Economic Growth in Nigeria. IOSR Journal of Humanities and Social Science, 22, 35-43.
9) Ministry of Agriculture., (2023). National Strategy for Agro-Processing and Food Production for Small Entrepreneurs in Belize, with the Central Farm Agro-processing Unit as a Fundamental Support Framework. Retrieved from https://www.agriculture.gov.bz/wp-content/uploads/2020/11/Draft-National-Agro-Strat-for-Belize-cleared.pdf
10) Shawa, M. J. and Shen, Y., (2013) Analysis of the Determinants of Trade Balance: Case Study of Tanzania. International Journal of Business and Economics Research. 2(6), 134-141
11) Statistical Institute of Belize., (2023). Abstracts of Statistics. Mid-Year Population Estimates by Sex: 1987 – 2022. Retrieved from: http://sib.org.bz/wp content/uploads/2022_Abstract_of_Statistics.pdf
12) Statistical Institute of Belize., (2023). Key Indicators September 2023. Retrieved from: https://sib.org.bz
13) Trading Economics., (2023). Belize Balance of Trade. Retrieved from: https://tradingeconomics.com/belize/balanceoftrade#:~:text=Belize%27s%20systemic%20trade%20deficit%20is,91%20percent%20of%20total%20exports.
14) Tsui, W. H. K., and Fung, M. K. Y., (2016). Causality between Business Travel and Trade Volumes: Empirical Evidence from Hong Kong. Tourism Management, 52, 395–404.
15) Verter, N., (2015). The Application of International Trade Theories to Agriculture. Conference on Trade and Development. 6 (6), 209-219.
16) United Nations World Tourism Organization., (2019). Sustainable Tourism for Development Guidebook: Enhancing Capacities for Sustainable Tourism for Development in Developing Countries. Retrieved from https://www.e-unwto.org/doi/pdf/10.18111/9789284415496
17) Yilmaz, H., Sanli, O., and Yilmaz, Y., (2015). The Effect of Tourism Revenues on Foreign Trade Deficit: The Case of Turkey. International Journal of Business and Management Studies, 4, 25–34.