Determinants of Trade Flow in the Democratic Republic of the Congo
Author(s)
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Abstract
In general, the mathematical function used is the logarithm function to study the Determinants of foreign trade. The model is based on an "imports" function and an "exports" function. It breaks down exports according to world demand and external competitiveness and imports according to gross domestic product and domestic competitiveness. It is a reduced model which makes it possible to study both imports and exports. In our case we have limited ourselves to studying the function of imports. The dependence of the economy on imports of products requires in the Democratic Republic of the Congo which deteriorates the trade balance. To this end, stabilized the exchange rate should not be short-lived. The revival of the economy through sufficient national production in auspicious business would contain external and unexpected shocks to the economy
Keywords
imports, foreign trade, exchange rate, trade balance
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