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The Causal Relationship between Exports, Imports and Economic Growth in Palestine

Author

Listed:
  • Islam Hassouneh

    (College of Administrative Science and Informatics, Palestine Polytechnic University (PPU), P.O. Box 198, Abu Ruman, Hebron, Palestine)

  • Zahra' Fannoun

Abstract

The relationship between exports, imports and economic growth is investigated for the Palestinian economy over the period 2000-2018, using quarterly data. To do so, cointegration test using Johansen's approach as well as vector error correction technique are used. Findings confirm the presence of long-run equilibrium relationship between exports, imports and output growth. Results also support the existence of bidirectional long-run causality between exports, imports and output growth. As for the short-run causality, findings support both the export-led import and the import-led export hypotheses. Further, imports are found to Granger cause economic growth. Policy makers should be aware of the importance of trade to stimulate economic growth.

Suggested Citation

  • Islam Hassouneh & Zahra' Fannoun, 2019. "The Causal Relationship between Exports, Imports and Economic Growth in Palestine," Journal of Reviews on Global Economics, Lifescience Global, vol. 8, pages 258-268.
    • Handle: RePEc:lif:jrgelg:v:8:y:2019:p:258-268
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    File URL: https://www.lifescienceglobal.com/independent-journals/journal-of-reviews-on-global-economics/volume-8/85-abstract/jrge/3538-abstract-the-causal-relationship-between-exports-imports-and-economic-growth-in-palestine
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    Citations

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    Cited by:

    1. Bakari, Sayef & Fakraoui, Nissar & Mabrouki, Mohamed, 2020. "The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru," MPRA Paper 99041, University Library of Munich, Germany.
    2. Lukman Ayinde Olorogun, 2022. "Revisiting the Nexus of FDI-Led Growth Hypothesis and Economic Development in Rwanda: a Johansen-ARDL Approach to Cointegration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2695-2717, December.
    3. Abdul Rehman & Hengyun Ma & Sufyan Ullah Khan & Muntasir Murshed & Muhammad Kamran Khan & Fayyaz Ahmad & Muhammad Zubair Chishti, 2023. "Do Exports of Communication Technology, Food, Manufacturing, and Foreign Investments Foster Economic Growth in Pakistan? an Exploration From Asymmetric Technique," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4238-4255, December.
    4. Bakari, Sayef, 2022. "The Impact of Natural resources, CO2 Emission, Energy use, Domestic Investment, Innovation, Trade and Digitalization on Economic growth: Evidence from 52 African Countries," MPRA Paper 114323, University Library of Munich, Germany.
    5. Udi Joshua & Oladimeji M. Salami & Andrew A. Alola, 2020. "Toward the path of Economic Expansion in Nigeria: The Role of Trade Globalization," Working Papers 20/009, European Xtramile Centre of African Studies (EXCAS).

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