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Export diversification and total factor productivity growth in case of South Asian region

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  • Badri Narayan Rath

    (Indian Institute of Technology Hyderabad)

  • Vaseem Akram

    (Indian Institute of Technology Hyderabad)

Abstract

While several studies examine the relationship between export diversification and economic growth, little is known about the relationship between export diversification and TFP growth. This paper makes an attempt to fill this research gap by considering South Asian region. We examine this relationship by looking at the long-run as well as the short-run relationship between TFP growth and export diversification by using annual data from 1995 to 2014. The empirical results derived from the panel cointegration technique provide evidence of long-run relationship between TFP growth and export diversification. The results based on DOLS confirm that export diversification positively affects the TFP growth in South Asian region; however, this evidence is weak when we analyzed each country separately. Finally, our results indicate that export diversification Granger cause TFP growth in the long-run, whereas no causality found in short-run. Our findings suggest that export diversification is crucial to avoid the volatility of export growth and for enchantment of productivity growth in South Asian region.

Suggested Citation

  • Badri Narayan Rath & Vaseem Akram, 2017. "Export diversification and total factor productivity growth in case of South Asian region," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(1), pages 196-210, April.
    • Handle: RePEc:spr:jsecdv:v:19:y:2017:i:1:d:10.1007_s40847-017-0037-z
    DOI: 10.1007/s40847-017-0037-z
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    Cited by:

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    2. Shen, Zhiyang & Wang, Songkai & Boussemart, Jean-Philippe & Hao, Yu, 2022. "Digital transition and green growth in Chinese agriculture," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    3. Peter Bauer & Igor Fedotenkov & Aurelien Genty & Issam Hallak & Peter Harasztosi & David Martinez Turegano & David Nguyen & Nadir Preziosi & Ana Rincon-Aznar & Miguel Sanchez Martinez, 2020. "Productivity in Europe: Trends and drivers in a service-based economy," JRC Research Reports JRC119785, Joint Research Centre.
    4. Dahmani, Mounir, 2021. "Impact de la diversification des exportations sur la croissance économique: Cas de la Tunisie [Impact of export diversification on economic growth: case of Tunisia]," MPRA Paper 112225, University Library of Munich, Germany, revised 2021.
    5. Vaseem Akram & Badri Narayan Rath, 2017. "Export Diversification and Sources of Growth in Emerging Market Economies," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(3), pages 1-13, September.
    6. Lee, Jinsoo & Yu, Bok-Keun, 2019. "The Effects of Export Diversification on Macroeconomic Stabilization: Evidence from Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 41(1), pages 1-14.
    7. Vaseem Akram, 2018. "Does export diversification converge? Evidence from cross-country analysis," Economics Bulletin, AccessEcon, vol. 38(4), pages 2141-2151.

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    More about this item

    Keywords

    Export diversification; TFP growth; Panel cointegration; DOLS; Panel causality; South Asia;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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