Productivity Performance and Export Performance: A Time-Series Perspective
AbstractRecent trade theory suggests that the relationship between trade and productivity is fundamentally ambiguous. This study investigates the cointegration and causal relationship between productivity growth and export growth for a number of industrialized countries. On the basis of Johansen's technique and the augmented Granger causality tests, the evidence shows that productivity and exports are causally related in the long run for each economy. The results suggest that export growth contributes to productivity growth and, thus, the expansion of exports is an integral part of productivity growth. We interpret these results as strongly supportive of the role of endogenous growth models in explaining continuous growth.
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Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 27 (2001)
Issue (Month): 2 (Spring)
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Exports; Growth; Productivity; Trade;
Find related papers by JEL classification:
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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- Lee, Jooh & Habte-Giorgis, Berhe, 2004. "Empirical approach to the sequential relationships between firm strategy, export activity, and performance in U.S. manufacturing firms," International Business Review, Elsevier, vol. 13(1), pages 101-129, February.
- Sarmidi, Tamat & Salleh, Norlida H, 2010. "Dynamic inter-relationship between trade, economic growth and tourism in Malaysia," MPRA Paper 21056, University Library of Munich, Germany.
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