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On Export Composition and Growth

Author

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  • Priyanga Dunusinghe

    (Priyanga Dunusinghe, Department of Economics, University of Colombo, PO Box 1490, Colombo 03. Email: dunusinghe@econ.cmb.ac.lk)

Abstract

Exports affect economic growth through several channels. It is argued that not only the volume of exports but what you export also matters to growth. This article investigates the effect of exports and export composition on the economic growth process in Sri Lanka. Sri Lanka’s exporting sector has performed remarkably, in particular, in the post-liberalization period. During the same period, her former commodity-dependant exporting sector has been transformed into one that largely exports low technology manufactures. Our regression analysis showed that the expansion of the exporting sector has positively and significantly affected gross domestic product (GDP) growth due to higher productivity level in the sector. However, the full benefits of a vibrant exporting sector have not materialized in Sri Lankan context since the externality spillovers of the exporting sector are negligible. Further, it showed that export diversification has played an important role in enhancing the growth prospect since it is the manufacturing exporting sector that has higher productivity level than the other sectors.

Suggested Citation

  • Priyanga Dunusinghe, 2009. "On Export Composition and Growth," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 10(2), pages 275-304, July.
    • Handle: RePEc:sae:soueco:v:10:y:2009:i:2:p:275-304
    DOI: 10.1177/139156140901000202
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    References listed on IDEAS

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    Cited by:

    1. Athanasia Stylianou Kalaitzi & Trevor W. Chamberlain, 2023. "Manufactured exports, disaggregated imports and economic growth: the case of Kuwait," Economic Change and Restructuring, Springer, vol. 56(2), pages 919-940, April.
    2. Reena Marwah & Sanika Sulochani Ramanayake, 2021. "Pandemic-Led Disruptions in Asia: Tracing the Early Economic Impacts on Sri Lanka and Thailand," South Asian Survey, , vol. 28(1), pages 172-198, March.
    3. Neveen M. TORAYEH, 2011. "Manufactured Exports And Economic Growth In Egypt: Cointegration And Causality Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(1).
    4. Klimis Vogiatzoglou, 2019. "Export Composition and Long-run Economic Growth Impact: A Cointegration Analysis for ASEAN ‘Latecomer’ Economies," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(2), pages 168-191, May.
    5. Sarker, Rakhal, 2018. "Trade Expansion, International Competitiveness and the Pursuit of Export Diversification in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 41(02), pages 1-25, June.

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    More about this item

    Keywords

    JEL: F11; JEL: F14; JEL: O047; Economic Growth; Export Composition; Sri Lanka; Trade;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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