ABSTRACT

A growing number of recent research analyse the trade balance impact on economic growth. However, ambiguous results of studies imply the need for the research as the deteriorating trade

balance hinders economic growth. This research aims to investigate the impact of the trade balance on economic growth as well as to evaluate it during the periods of trade deficit. The deterioration of trade balance reduces average economic growthand from linear relationship evaluation, we can state that it does not matter whether it starts fromtrade deficit or surplus result.       

When discussing directions for further research it would make sense to consider other factors, such as the size of the deficit and its permanence.