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The objective of this research is to examine the impact of trade deficits on Belize and the relationship between trade deficits and factors that influence economic growth. In this study, the trade deficit is the dependent variable. The economic factors, which are the independent variables, include Gross Domestic Product (GDP), Foreign Direct Investment (FDI), Inflation, Agriculture, and Tourism. This research is beneficial in understanding the impact of trade deficits in developing countries. It is particularly important because studies on trade deficits and developing countries are available, but studies specifically about Belize and trade deficits are scarce. This research fills a gap in the literature and explores an under-researched area. The findings indicate that (i) Trade Deficit impacts GDP and Inflation, and (ii) Trade Deficit is not correlated with FDI, Agriculture, and Tourism.
Chiang et al. (Sat,) studied this question.