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Manufactured Exports, Capital Good Imports, and Economic Growth: Experience of Mexico and Brazil

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  • M. Imam Alam
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    Abstract

    This paper examines the export-led growth hypothesis using data from two Latin American countries, Mexico and Brazil, in a production function framework. It addresses some of the limitations of existing methods of testing the hypothesis. Contrary to popular belief, we do not find any evidence to support the hypothesis. Imported capital goods appear to be very significant in the growth process of these two countries. To check the robustness of the results, this study uses two different cointegrating procedures to determine the number of cointegrating vectors, and three different methods to estimate the parameters of the long-run relations. The results are robust across estimation techniques. [F43, F14, O47, O54]

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal International Economic Journal.

    Volume (Year): 17 (2003)
    Issue (Month): 4 ()
    Pages: 85-105

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    Handle: RePEc:taf:intecj:v:17:y:2003:i:4:p:85-105

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    Cited by:
    1. Emine KILAVUZ & Betül ALTAY TOPCU, 2012. "Export and Economic Growth in the Case of the Manufacturing Industry: Panel Data Analysis of Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 2(2), pages 201-215.

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