The effect of selected macroeconomic variables on international trade

Macroeconomics considers the general scenario of economic development. In simple terms, it focuses on how the economy works as a whole. The advantage of identifying the macroeconomic factors supporting international trade processes are crucial. This includes taking into account variables such as unemployment, GDP, and inflation. The aim of this study was to understand the effects of selected macroeconomic variables on international trade. The study covered 20 years of secondary data starting from 2000 to 2019. BRIC countries were selected as the sample for this study. The model is estimated using panel ARDL model. The study finds evidence for a strong and significant impact of selected macroeconomic variables on trade openness in the long run. However, the short run results did not show any significant impacts rather than unemployment, which was positive. The long term showed a mixed nature of the effects, and they were all consistent with the reviewed literature.