The relationship between imports, GDP and CPI has been controversial among researchers, economists and how they would affect each other. Here in my research paper I brought up the same research issue and analyzing their effects on economic growth of UK. I would consider the impact of GDP and inflation on imports of UK. I would expand and review some previous researches done in this field and then would run the data into Eviews package program.
Literature review
Inflation
A general increase in overall prices of all goods and services in an economy is called inflation. Inflation is an upward movement in price levels which is opposed to deflation. An extreme inflation can be called hyperinflation.
GDP (Gross domestic product)
The value of all the finished goods and services produced within a country’s borders in a specific time period. GDP includes all private and public consumption, government outlays, investments, private inventories, paid-in construction costs and the foreign balance of trade exports are added, imports are subtracted. GDP is calculated annually or quarterly. GDP is commonly used as an indicator of the economic health of a country, as well as a gauge of a country’s standard of living.
Import
Imports is the flow of goods and services from foreign country to home country. GDP is commonly used as an indicator of the economic health of a country, as well as a measure of a country’s standard of living
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