TRADE INFLUENCE ON GROWTH FOR NEW EU COUNTRIES

Increasing international trade leads to economic growth and development for partner countries. But the actual economic crisis shows an important transmission channel of international trade on consumption and on growth. In this paper we analyze the trade influence on growth for countries that are new entries in European Union. The admission in the select club of EU countries eliminates trade barriers and trade volume increases after admission. We proves that admission effect and trade increasing had a positive effect on growth for analyzing countries. Using a panel data model for 13 European countries we found positive effects of government deficit, specialization and trade and no effects for exchange rate and FDI volume.