Relationship Between Exports and Gross Domestic Product

Running head: PROFESSIONAL PROJECT
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Executive Summary
This study has illustrated the impact of exports of products on gross domestic product of a
country. This study has considered the Gross domestic product of Australia and their export
behaviour. The study had analysed relevant scholarly articles and peer reviewed journals to
prove the existing theories. The study had used a single research design to conduct quantitative
analysis to validate the existing theories. The study has proved that there is positive correlation
between exports and Gross domestic product of Australia.

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Table of Contents
Chapter 1..........................................................................................................................................5
1.0 Introduction................................................................................................................................5
1.2 Research Aim and Objective.....................................................................................................6
1.3 Research Hypothesis..................................................................................................................6
1.4 Research Question.....................................................................................................................6
2.2 Gross Domestic Product............................................................................................................8
2.3 Relationship between Exports and Gross Domestic Product....................................................9
3.0 Research Methodology............................................................................................................10
3.1 Research Philosophy................................................................................................................10
3.2 Research Approach..................................................................................................................10
3.3 Research Purpose.....................................................................................................................11
3.4 Data Collection Method...........................................................................................................11
3.5 Data Analysis Technique.........................................................................................................11
3.6 Sampling Technique................................................................................................................12
3.7 Research Ethics........................................................................................................................12
3.8 Research Limitation.................................................................................................................12
4.0 Findings and Analysis..............................................................................................................13
4.1 Quantitative analysis................................................................................................................13
4.2 Different factors affecting GDP of Australia...........................................................................19

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4.3 Regression Analysis.................................................................................................................21
5.0 Conclusion...............................................................................................................................25
5.1 Objective 1- To find the impact of export on the GDP of a nation..........................................25
5.2 Objective 2- To evaluate the factors of export that impacts the GDP of a nation..................25
References......................................................................................................................................26

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Chapter 1
1.0 Introduction
This study will illustrate the impact of exports of products on gross domestic product of a
country. This study will consider the Gross domestic product of Australia and their export
behaviour. The study will analyze relevant scholarly articles and peer reviewed journals to prove
the existing theories.
1.1 Background of the study
Gross domestic product represents the economic growth of the country as identifies the
trade activities and time span of activities. The national income of a country is used to calculate
the gross domestic product of the country. As stated by McCombie and Thirlwall, (2016),
increase in exports will have a positive impact on gross domestic product and vice versa.
However, the short-term impact of exports on gross domestic product will be different when
compared to the long-term impact of exports. The economic structure of an economy will
determine the way in which the export will influence the gross domestic product. There are
various elements of exports, which if changed there will be changes in pattern of gross domestic
product. Australia has been one of the largest exporters of agricultural products, which includes
livestock and wheat. Thus, the production cost in the country is less and is least in the production
of grains. Endowments patterns are influenced by the factors such as climatic change. The
change in climate will affect the production of agricultural products, which means that adverse
effect of climatic condition will diminish the value of Australia as an exporter (Belloumi, 2014).

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This shows that fluctuation in the endowment factors can have both positive impact and negative
impact on the gross domestic product of Australia.
1.2 Research Aim and Objective
The study is aiming to identify the impact of exports on the economy of a country. The
different elements of export will have a positive or negative impact on the different elements of
Gross domestic product. The study will investigate how the elements of exports are affecting the
factors of gross domestic product. The impact of GDP is different in different countries as it
depends on the economic setting and the study will specifically identify the influence in the
Australian context.
Research objectives
 To identify the impact of exports on Gross Domestic Product
 To evaluate the different elements of export affecting Gross Domestic product
1.3 Research Hypothesis
H0 – Exports does not have any impact on Gross Domestic Product
H1 – Exports have impact on Gross Domestic Product
1.4 Research Question
 What is the impact of exports on Gross Domestic Product?
 What is the significance of exports on Gross Domestic Product?