Trade openness and economic growth: is growth export-led or import-led?
AbstractMost previous investigations have only focused on the effect of export expansion on economic growth while ignoring the potential growth-enhancing contribution of imports. This article re-examines the relationship between trade and economic growth in Argentina, Colombia, and Peru with emphasis on both the role of exports and imports. Granger causality tests and impulse response functions were used to examine whether growth in trade stimulate economic growth (or vice versa). The results suggest that the singular focus of past studies on exports as the engine of growth may be misleading. Although there is some empirical evidence supporting export-led growth, the empirical support for import-led growth hypothesis is relatively stronger. In some cases, there is also evidence for reverse causality from gross domestic product growth to exports and imports.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 40 (2007)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shahbaz, Muhammad, 2012.
"Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan,"
Elsevier, vol. 29(6), pages 2325-2339.
- Muhammad, Shahbaz, 2012. "Does Trade Openness Affect Long Run Growth? Cointegration, Causality and Forecast Error Variance Decomposition Tests for Pakistan," MPRA Paper 37391, University Library of Munich, Germany, revised 10 Mar 2012.
- Muhammad Shahbaz & Mohammad Mafizur Rahman, 2012.
"The Dynamic of Financial Development, Imports, Foreign Direct Investment and Economic Growth: Cointegration and Causality Analysis in Pakistan,"
Global Business Review,
International Management Institute, vol. 13(2), pages 201-219, June.
- Muhammad, Shahbaz & mohammad, Mafizur Rahman, 2011. "The dynamic of financial development, imports, foreign direct investment and economic growth: cointegration and causality analysis in Pakistan," MPRA Paper 32181, University Library of Munich, Germany, revised 12 Jul 2011.
- Mohammad Mafizur Rahman & Muhammad Shahbaz, 2013.
"Do Imports and Foreign Capital Inflows Lead Economic Growth? Cointegration and Causality Analysis in Pakistan,"
South Asia Economic Journal,
Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 59-81, March.
- Rahman, Mohammad Mafizur & Shahbaz, Muhammad, 2011. "Do Imports and Foreign Capital Inflows Lead Economic Growth? Cointegration and Causality Analysis in Pakistan," MPRA Paper 29805, University Library of Munich, Germany, revised 24 Mar 2011.
- Yakub Halabi, 2013. "Perpetuating the global division of labour: defensive free trade and development in the third world," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 20(1), pages 91-120, June.
- Fullerton, Thomas M., Jr. & Kababie, Kababie & Boehmer, Charles R., 2012. "International trade and economic growth in Mexico," MPRA Paper 42991, University Library of Munich, Germany.
- Muhammad, Shahbaz & Mohammad, Mafizur Rahman & Abdul, Farooq, 2012. "Financial Development, International Trade and Economic Growth in Australia:New Evidence from Multivariate Framework Analysis," MPRA Paper 42023, University Library of Munich, Germany, revised 17 Oct 2012.
- Paula Gracinda Santos & Ana Paula Ribeiro & Vitor Manuel Carvalho, 2013. "Export-led growth in Europe: Where and what to export?," FEP Working Papers 479, Universidade do Porto, Faculdade de Economia do Porto.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.