Measuring the mutual effect between economic growth and foreign trade in Kuwait for the period (1995-2020)

Abstract

 Economic growth is important for any economic policy, regardless of whether the country is developed or developing, and growth is a complex intertwined process with multiple factors affecting it, as its achievement requires the provision of an appropriate economic, political and social environment in order to reach it because it reflects the stability, progress and development of the country and foreign trade is of great importance They are related to export earnings and their impact on the economic development process because exports are a catalyst that helps in increasing economic growth rates The Kuwaiti economy is highly dependent on foreign trade. Exports are mostly oil exports, which constitute a high or basic percentage of the Kuwaiti national income. Using the causal model, we tried to show the reciprocal relationship between economic growth and foreign trade in Kuwait for the period (1995-2020). The fluctuations of world oil prices and its exports and their impact on Kuwait's national income.