Bibliometric Analysis- Economic Growth & International Trade

INTRODUCTION

International commerce has been an exceedingly powerful driver to global growth as a major driver of globalization. International trade has grown rapidly in tandem with the country’s strong economic development, prompting the country to look to the rest of the world as a market. In a two-sector endogenous development model, there is a relationship between economic growth, industrialization, and foreign exchange. The economy evolves inexorably down a sustainable growth path as a result of learning by doing, with manufacturing’s relative price falling steadily. External development would affect the trading trend and growth of the economy. Its rise will keep up with the rest of the world if it maintains its trade diversification. If the remainder of the world’s growth rate crosses a certain threshold, the economy will be unable to keep up and will ultimately produce only agriculture.

Smith (1776) presented two points. Firstly, International Trade allowed the domestic economy to transcend its small scale, and on the other hand, by raising the market’s size, the labor division improved and productivity increased. International trade will thus become a competitive force capable of increasing work capacity and abilities, promoting technological creativity and capital investment, overcoming technical indivisibility, and, in general, allowing participating countries to experience economic development.Ricardo (1817) proposed a three-force and two-restriction “dynamic model of Economic Growth”. He described progressive states as those with high savings, capital accumulation, efficiency, welfare, and labor demand, all of which force wage increases and demographic growth.However, due to land constraints, both in terms of quantity and efficiency, additional alimentary capital is obtained under conditions of declining returns, under which production is increasingly consumed by incomes, reducing the stimulus of new investments and, sooner or later, approaching the stationary state. It has the potential to postpone the profit rate decline.

Ricardo’s adherents dismissed the issue of comparative advantages’ foundations and failed to recognize causes arising from International Trade that could lift, in a long-term form, the rate of Economic Growth and its propensity. In general, the Ricardian theory’s reforms showed the rise in welfare caused by International Trade, but they overlooked subsequent gains in the rate of Economic Growth. “The factors that decide the economic success of nations belong to the study of foreign trade,” Marshall said. In effect, the business expansion represented increased global demand and sparked the growth of both the domestic and foreign economies, resulting in increased profits for the population. But, although he acknowledged the significance of those externalities, he also recognized the limitations of his analytic approach. Only Young (1928), one of his predecessors, was concerned with economic growth because he, like Smith, believed that the size of the economy restricted the division of labor (and therefore, the productivity). He also looked at the interrelationships between industries during the economic growth phase, the emergence of new industries as a result of industry specialization, the role of specialization and standardization in a large market, and the impact of this market on technological development. The propensity of benefit to hitting a low, as well as the rate of economic growth reliance on capital accumulation, according to Schumpeter. But he went much further, distinguishing between ‘invention’ and ‘innovation’ (the application of useful information to production) (economic activity of exploring that knowledge). He defined the criteria for a good innovation using the latter as the core aspect of economic growth.

The revival of the classical method, according to which development was a feature of labour, capital, property, and their productivities, reawakened interest in the EG in the late 1950s and early 1960s. The topic of economic growth accounting was also brought up. The modern neoclassical model defines the relationship between savings, capital accumulation, and EG as a function of gross demand (crucial supply), with a point of sustainable equilibrium (steady-state) reaching independent of initial conditions. Exogenous technological advancement improved factor efficiency, which had a beneficial impact on the accumulation process and made the model consistent with a sustainable growth path. In economic terms, this means that the integration of markets was taken into account. Furthermore, with the diffusion of technological change, the rate of economic growth per capita will converge to a typical steady-state. As a consequence, it can be said that international trade is necessary for LDCs because it encourages the diffusion of technological change. Solow (1957) used the role of gross output as a starting point to calculate the origins of economic growth in the United States when it came to accounting for economic growth. The rate of economic growth is calculated by the growth rates of labour and capital (what we refer to as conventional sources), which are weighted by the factors’ respective involvement in the development and technological advancement or overall productivity.

Documents by Year                                     

The above graph represents the number of documents per year. From the graph, we have noticed that there was no growth in international trade in the period of 1950s–1990s. From the 1990s onwards, we could see a drastic change in economic growth and international trade. The number of documents started increasing each year. 33 documents were written in the year 1991. But before 1990, hardly 1 or 2 documents were written in this aspect. There were ups and downs in each year after 1991. But from 2014 onwards, the numbers of articles are continuously increasing. In 2020, the highest documents ‘117’ are written in an aspect of international trade and economic growth.

Documents per year by Source

SOURCE TP (%) TC CITE SCORE
Energy Policy 251 23,306 8.7
Journal of International Trade and Economic Development 30 352 1.9
World Economy 64 860 1.7
Applied Economics 218 3156 1.9
Journal of Development Economics 68 1804 5.0
Journal Of Cleaner Production 2707 1,37,661 10.9
Energy Economics 197 10518 8.9
Oil and Gas Journals 84 177 0.5
Journal of International Economics 43 1533 4.3
World Development 263 7896 7.1
Economic Outlook 12 8 0.0
Kyklos 11 297 3.2
Review of Development Economics 49 411 1.3
Review of International Economics 32 241 1.2

 

The above table shows the number of documents per year by source. TP represents the total publications and TC represents total citations. Journal of Development Economics has the highest publications ‘2707’, citations ‘137661’ and cite score ’10.9’ among all mentioned above in the table.

Authorship of Authors

There is no relationship between authorship of authors. They are not connected. All authors are far away from each other.

Authorship between Countries

56 different countries have worked on international trade and economic growth. 8 clusters and 327 links are found in the above graph. The total link strength is found to be 664. The largest country is the United States for international trade and economic growth. The United States has the highest connections with other countries. The United States has also a connection with Chile, which is far away from the United States. Second, comes the United Kingdom which also has great connections.

Documents by Author

The below graph represents documents by different authors:

Documents are written by different authors on international trade and economic growth. Anon has written the highest number of documents in this aspect in Scopus.

CO – WORDS

The probability of co-occurrence of two keywords in the same literature is measured using co-word or co-occurrence analysis. It is based on the premise that keyword co-occurrence has a non-trivial relationship. When a group of keywords is commonly used together by various writers in a given field, it could indicate that the keywords have a meaningful relationship within the field of study.Without relying on a priority concepts, this bibliometric approach explicitly derives the main themes of a study field and the linkages between these themes based on the co-occurrence of word pairs. As a result, they assist in revealing the area’s philosophical context and main research topics.

There are around 540 co-words related to international trade and economic growth. These words are all closely related to each other.

CO – CITATION

A review of cited documents is used to determine the extent to which two older documents are cited together. As a result, a co-citation relation is a connection between two documents that are quoted together in a subsequent text. As a group of documents is regularly co-cited in a given field, it could indicate that the co-cited documents contain essential ideas that peers have identified.As a result, a co-citation network analysis may be used to classify the key literature in a given field.

The number of citing authors who quote two earlier works together determines the strength of a co-citation relation. As a result, co-citation is a transient interaction, and the co-citation network pattern grows over time. The same can be said with co-word research, which varies when a field’s language co-occurrences change.

There are around 530 items in co-citation among authors, 3 clusters and total links are 6631.

Documents by Subject Area:

The pie chart represents that the highest documents are available in the field of economics, econometrics and finance among various fields as shown.

CONCLUSION

Through reviewing 1593 related documents from the Scopus archive, this analysis used a bibliometric approach to analyze the studies on economic growth and international trade. To analyze the theoretical roots, network composition, and thematic development in this research area,co-citation and co-word studies, as well as a groundbreaking visualization of the co-word network were used.With the help of science maps, it was able to complete an update, study further experiments, and expose the scientific basis of the discipline, as well as demonstrate the progression of the main themes in the research area.It has also offered a valuable methodological supplement to previous literature reviews using bibliometric approaches, enhancing appreciation of this rapidly increasing knowledge field and validating previous results.

International trade facilitates the accumulation of intellectual resources and, as a result, leads to sustainable economic development. As a result, to boost and maintain economic growth, developed countries must plan and adopt forward-looking trade liberalization policies.Secondly, technology import liberalization because helps to import countries to increase their innovation rate and, as a result, accelerate steady economic growth. This necessitates a trade policy that aids in the maintenance of import technology incentives.Third, foreign trade is determined by the domestic labor force’s ability to consume technologies and its level of expertise. As a result, government program should be structured in such a manner that both intellectual capital accumulation and technological acceptance are rewarded.

REFERENCES:-

  1. Oscar A; The impact of international trade on economic growth
  2. Wong K, Yip C; Industrialization, Economic Growth, and International Trade
  3. William R., Easterly; (1993) Fiscal Policy and Economic Growth
  4. Haq M, The contribution of international trade to economic growth through human capital and accumulation

 

Nishtha Kapoor

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