IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.47year2013issue1pp47-62.html
   My bibliography  Save this article

The export-income relationship in developing countries: evidence from panel cointegration

Author

Listed:
  • P.J. Dawson
  • Ana I. Sanjuán-López

    (Newcastle University, UK)

Abstract

This paper quantifies the contribution of exports to economic growth in developing countries. We apply recently developed panel cointegration methods which admit structural breaks to examine bivariate export-income relationships for a panel of 47 developing countries for annual data for 1970–2004. Results show that long-run relationships exist and there is bi-directional causality between exports and income; structural breaks occur in most country-specific relationships and most occur in the 1980s following the debt crisis of 1981–82; the income-export elasticity is 0.22 while the export-income elasticity is 1.13. Structural differences also exist in the relationships by broad income group and the impact of exports on income increases while that of income on exports falls as income increases. Export-promotion policies are not misplaced and the trade liberalisation policies advocated and sometimes imposed by the World Bank which aim to stimulate economic development seem justified but should by tailored to individual country needs.

Suggested Citation

  • P.J. Dawson & Ana I. Sanjuán-López, 2013. "The export-income relationship in developing countries: evidence from panel cointegration," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(1), pages 47-62, January-J.
    • Handle: RePEc:jda:journl:vol.47:year:2013:issue1:pp:47-62
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v047/47.1.dawson.html
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Export-Income Relationship; Developing Countries; Panel Cointegration;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    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:jda:journl:vol.47:year:2013:issue1:pp:47-62. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    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.