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Export-led growth hypothesis: cointegration and causality analysis for Taiwan

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  • Bagala Biswal
  • Urvashi Dhawan

Abstract

The hypothesis of export-led growth (ELG) hypothesis is tested for Taiwan using Engle and Granger's (1987) cointegration and error correction model approaches. This study shows that total exports and GDP, as well as exports of manufactured goods and GDP are cointegrated during the post-reform period, 1960-90. This study also finds evidence of bidirectional causality, and thus concludes that, in the case of Taiwan, exports and growth mutually reinforce each other.

Suggested Citation

  • Bagala Biswal & Urvashi Dhawan, 1998. "Export-led growth hypothesis: cointegration and causality analysis for Taiwan," Applied Economics Letters, Taylor & Francis Journals, vol. 5(11), pages 699-701.
  • Handle: RePEc:taf:apeclt:v:5:y:1998:i:11:p:699-701
    DOI: 10.1080/135048598354159
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    Cited by:

    1. Alper Aslan & Ebru Topcu, 2018. "The Relationship between Export and Growth: Panel Data Evidence from Turkish Sectors," Economies, MDPI, vol. 6(2), pages 1-15, April.
    2. Boriss Siliverstovs & Dierk Herzer, 2006. "Export-led growth hypothesis: evidence for Chile," Applied Economics Letters, Taylor & Francis Journals, vol. 13(5), pages 319-324.
    3. Sumie Sato & Mototsugu Fukushige, 2007. "The End of Import-Led Growth? North Korean Evidence," Discussion Papers in Economics and Business 07-38, Osaka University, Graduate School of Economics.
    4. László Kónya & Jai Pal Singh, 2007. "Causality between Indian Exports, Imports, and Agricultural, Manufacturing GDP," Working Papers 2007.02, School of Economics, La Trobe University.
    5. Bilas Vlatka & Franc Sanja & Bošnjak Mile, 2015. "Examining the Export-led Growth Hypothesis: The case of Croatia," Naše gospodarstvo/Our economy, Sciendo, vol. 61(3), pages 22-31, June.
    6. Tsigas, Marinos E. & Boughner, Devry S., 2003. "The U.S. Sugar Program versus Bilateral and Multilateral Trade Liberalization," Conference papers 331131, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Aamer Abu-Qarn & Suleiman Abu-Bader, 2004. "The validity of the ELG hypothesis in the MENA region: cointegration and error correction model analysis," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1685-1695.
    8. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    9. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214, Elsevier.
    10. Sato, Sumie & Fukushige, Mototsugu, 2011. "The North Korean economy: Escape from import-led growth," Journal of Asian Economics, Elsevier, vol. 22(1), pages 76-83, February.
    11. Asmawi Hashim & Norimah Rambeli & Norasibah Abdul Jalil & Normala Zulkifli & Emilda Hashim & Noor Al-Huda Abdul Karim, 2019. "Does Export Led Growth Hypothesis Hold Under World Crisis Recovery Regime in Malaysia?," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 9-19, December.
    12. Oladapo FAPETU & Segun Daniel OWOEYE, 2017. "Testing the validity of the export-led growth hypothesis in Nigeria: Evidence from non-oil and oil exports," Computational Methods in Social Sciences (CMSS), "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences, vol. 5(2), pages 41-48, December.

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