The factors influencing the economy of a country in financing the international trade: evidence from Asia and Pacific countries / Norviannie Noran @ Nuran

Appropriate understanding and acceptance about factors financing in international trade should now be regarded as an essential requirement within any modern business. For this research paper, factors of financing in international trade that impacts economy of a country are sought and critically reviewed. Due to seeking for factors financing in international trade, secondary data from World Bank Data and articles from business and economic journals were used. Next, in order to analyze the data and to see the findings, Stata were used to run the secondary data to see the significant between the dependent and independent variables. For the data and methodology, secondary data from World Bank data been used for this research. 10 countries from Asia and Pacific countries such China, India, Lao, Sri Lanka, Indonesia, Mongolia, Bangladesh, Pakistan, Philippines and Vietnam and covering from 2006 to 2017. The method been used are the descriptive statistics to show simple summary of the mean, observation number, skewness and kurtosis. Panel unit root test used to see whether the data is free from unit root. BPLM test is to find out whether the data is pooled by OLS. The diagnostic test is to test whether the data not suffer from heteroscedasticity, multicollinearity and the autocorrelation. Lastly, robust test is to treat any problem in the data. For the result, there is a significant relationship for Foreign Direct Investment (FDI), Lending Interest Rate (LEND) and Trade (TRD) with GDP. For External Debt Stock (DOD), there is no significant relationship with GDP. This study was conducted to have a better knowledge in the Foreign Direct Investment (FDI), Lending Interest Rate (LEND), External Debt Stock (DOD) and Trade (TRD) between the economic growths that measured using the GDP. Even though there is significant results but it is still need to be have a further analyzed with sufficient time and more detailed information by the future analysis in order to have another strong evidence that international trade can affects the economic growth.