IDEAS home Printed from https://ideas.repec.org/a/bpj/rmeecf/v2y2004i3n4.html
   My bibliography  Save this article

Revisting the Trade-Growth Nexus: Further Evidence from Egypt

Author

Listed:
  • Al-Mawali Nasser R

    (Sultan Qaboos University)

Abstract

This paper utilizes Feder’s production function in revisiting the relationship between exports and economic growth by testing the hypothesis of the export-led growth in relation to the Arab Republic of Egypt. It also aims to show the difference in the marginal productivities between the export and non-export sectors in Egypt and how the export sector can positively affect the non-export sectors. The model mainly adopts a supply-side description of the economy, using the neo-classical growth approach under the framework of an aggregate production function. The conclusion of the study is that marginal productivities are higher in the export sector than in the non-export sector. This will allow the Egyptian economy to grow faster without having new capital infusion or labor expansion simply by reallocating the limited resources into the export sector. The reallocation of resources to the export sector will produce positive externalities and result in higher productivity for the whole Egyptian economy.

Suggested Citation

  • Al-Mawali Nasser R, 2004. "Revisting the Trade-Growth Nexus: Further Evidence from Egypt," Review of Middle East Economics and Finance, De Gruyter, vol. 2(3), pages 51-58, December.
    • Handle: RePEc:bpj:rmeecf:v:2:y:2004:i:3:n:4
    DOI: 10.2202/1475-3693.1029
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1475-3693.1029
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1475-3693.1029?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Moschos, Demetrios, 1989. "Export expansion, growth and the level of economic development: An empirical analysis," Journal of Development Economics, Elsevier, vol. 30(1), pages 93-102, January.
    2. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
    3. Rana, Pradumna B., 1988. "Exports, policy changes, and economic growth in developing countries after the 1973 oil shock : Comment," Journal of Development Economics, Elsevier, vol. 28(2), pages 261-264, March.
    4. Michaely, Michael, 1977. "Exports and growth : An empirical investigation," Journal of Development Economics, Elsevier, vol. 4(1), pages 49-53, February.
    5. World Bank, 2002. "World Development Indicators 2002," World Bank Publications - Books, The World Bank Group, number 13921, December.
    6. Fosu, Augustin Kwasi, 1990. "Exports and economic growth: The African case," World Development, Elsevier, vol. 18(6), pages 831-835, June.
    7. Krueger, Anne O, 1980. "Trade Policy as an Input to Development," American Economic Review, American Economic Association, vol. 70(2), pages 288-292, May.
    8. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
    9. Ahmad, Jaleel & Kwan, Andy C. C., 1991. "Causality between exports and economic growth : Empirical evidence from Africa," Economics Letters, Elsevier, vol. 37(3), pages 243-248, November.
    10. Dodaro, Santo, 1991. "Comparative advantage, trade and growth: Export-Led growth revisited," World Development, Elsevier, vol. 19(9), pages 1153-1165, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fadzil, Atikah & Masih, Mansur, 2017. "Does export lead growth? evidence from Japan," MPRA Paper 109290, University Library of Munich, Germany.
    2. Winter-Nelson, Alex, 1995. "Natural resources, national income, and economic growth in Africa," World Development, Elsevier, vol. 23(9), pages 1507-1519, September.
    3. Turan Subasat, 2003. "Does the Dollar Index Really Measure Outward Orientation?," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(3), pages 309-326.
    4. Mucahit Aydin & Murat Sari, 2014. "Relationship Between Gdp And Export In Turkey," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 282-288, May.
    5. Onafowora, Olugbenga A. & Owoye, Oluwole, 1998. "Can Trade Liberalization Stimulate Economic Growth in Africa?," World Development, Elsevier, vol. 26(3), pages 497-506, March.
    6. Abhijit Sharma & Theodore Panagiotidis, 2003. "An Analysis of Exports and Growth in India: Some Empirical Evidence (1971-2001)," Working Papers 2003004, The University of Sheffield, Department of Economics, revised Nov 2003.
    7. Ambreen FATEMAH & Abdul QAYYUM, 2018. "Modeling the impact of exports on the economic growth of Pakistan," Turkish Economic Review, KSP Journals, vol. 5(1), pages 56-64, March.
    8. van den Berg, Hendrik, 1997. "The relationship between international trade and economic growth in Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 1-21.
    9. Jong Park & Penelope Prime, 1997. "Export performance and growth in China: a cross-provincial analysis," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1353-1363.
    10. Sheridan, Brandon J., 2014. "Manufacturing exports and growth: When is a developing country ready to transition from primary exports to manufacturing exports?," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 1-13.
    11. AKBAR Mohammad & NAQVI Zareen Fatima, 2010. "Are Exports an Engine of Growth in Pakistan?," EcoMod2003 330700004, EcoMod.
    12. Asmawi Hashim & Norimah Rambeli & Norasibah Abdul Jalil & Normala Zulkifli & Emilda Hashim & Noor Al-Huda Abdul Karim, 2019. "Does Export Led Growth Hypothesis Hold Under World Crisis Recovery Regime in Malaysia?," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 9-19, December.
    13. Winter-Nelson, Alex, 1996. "Discount rates, natural resources, and the measurement of aggregate economic growth in Africa," Ecological Economics, Elsevier, vol. 17(1), pages 21-32, April.
    14. Sayef Bakari, 2017. "The Three-Way Linkages Between Export, Import And Economic Growth: New Evidence From Tunisia," Journal of Smart Economic Growth, , vol. 2(3), pages 13-53, December.
    15. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    16. Mohammad Afzal & Ijaz Hussain, 2010. "Export-Led Growth Hypothesis: Evidence from Pakistan," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(1), pages 130-147, January.
    17. Sayef Bakari, 2017. "The Impact of Vegetables Exports on Economic Growth in Tunisia," Economic Research Guardian, Weissberg Publishing, vol. 7(2), pages 72-87, December.
    18. Ashfaque H. Khan & Afia Malik & Lubna Hasan, 1995. "Exports, Growth and Causality: An Application of Co-integration and Error-correction Modelling," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 1001-1012.
    19. Hatemi-J, Abdulnasser, 2002. "Export performance and economic growth nexus in Japan: a bootstrap approach," Japan and the World Economy, Elsevier, vol. 14(1), pages 25-33, January.
    20. Stefanescu, Razvan & Dumitriu, Ramona, 2014. "Investigation on the relationship between Romanian foreign trade and industrial production," MPRA Paper 62547, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:rmeecf:v:2:y:2004:i:3:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.