Volatility of economic growth can be harmful to the economy due to its unfavorable macroeconomic implications, mostly related to slow down of long−term economic growth. Therefore, it is vital to understand the factors determining volatility of economic growth. This dissertation investigates the role of international trade by researching the volume and structure of trade flows of goods and services. Empirical analysis is based on a sample of 83 countries at different levels of development during the period of 1995−2018. It uses regression model of panel data with fixed effects. The results show that greater trade openness is associated with lower volatility of economic growth, primarily in less developed countries. The stabilizing potential of international trade refers to trade in goods, while trade in services does not contribute to lower volatility of economic growth. Diversification of exports of goods also helps mitigate volatility of economic growth. In addition, export specialization in products of higher value−added contributes to more stable economic growth, while specialization in exports of services with regard to value−added does not affect volatility of economic growth. These findings highlight the importance of promoting free trade and strengthening trade integration, along with increasing diversification in exports of goods and export specialization in products of higher value−added, in order to mitigate the adverse effects of volatility of economic growth.