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Export-Led Growth Hypothesis in Developing Countries

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Author Info
Zulkornain Yusop
Shahrun Nizam bin Abdul Aziz
Chee-Keong Choong

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Abstract

The relationship between exports and economic growth has been fully analyzed by a large number of recent empirical papers. Nevertheless, the evidence is rather mixed. This study re-examines the Export-Led Growth hypothesis (ELG) in four developing countries, namely India, Malaysia, Nigeria and the Philippines using Johansen Multivariate cointegration approach and Vector Error Correction Model (VECM). The results suggest that the ELG hypothesis is valid for Indian and Malaysian economies in both short and long-run. Besides, our results indicate that the growth rate of imports and government expenditure have a positive impact on economic growth for both countries.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai Journal of Financial Economics.

Volume (Year): V (2007)
Issue (Month): 3 (September)
Pages: 64-77
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Handle: RePEc:icf:icfjfe:v:05:y:2007:i:3:p:64-77

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