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Causality between exports and economic growth: empirical estimates for slovenia

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  • Jani Bekő

Abstract

This paper employs error-correction representation approach and conditional causality technique to assess the patterns of export-economic growth link in Slovenia. In general, the results support the existence of bi-directional causality between export variables and indicators of domestic economic activity. The evidenced bi-directional causality of exportoutput relation for Slovenia suggests that any characterization of a small country's growth as export-driven may be at least perfunctory. As the results imply, there are no trade-offs between whether to pursue a growth strategy of structural reforms for internal competitiveness with the goal of higher domestic growth and afterwards an increasing exports, or to apply trade policy for improving the international competitiveness and enabling the economy a quick response to foreign demand.

Suggested Citation

  • Jani Bekő, 2003. "Causality between exports and economic growth: empirical estimates for slovenia," Prague Economic Papers, Prague University of Economics and Business, vol. 2003(2), pages 169-186.
    • Handle: RePEc:prg:jnlpep:v:2003:y:2003:i:2:id:213
    DOI: 10.18267/j.pep.213
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    More about this item

    Keywords

    exports; economic growth and causality;

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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