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The export-led growth hypothesis revisited: theory and evidence

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  • Hildegart Ahumada
  • Pablo Sanguinetti

Abstract

Export growth is often singled out as a key aspect in processes of fast and sustainable increases in per capita income. In this paper we revisit this export-led growth hypothesis (ELGH). From an empirical point of view we study this phenomenon applying Granger-type tests on panel data. The results seem to confirm that, for the sample of countries and the period under study, exports did behave as the “engine of growth” as they Granger-caused investment, output growth and imports. In the theoretical part of the paper we reframe the ELGH standard model in terms of recent models of endogenous growth so as to make it more consistent with these empirical findings.

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Bibliographic Info

Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

Volume (Year): 22 (1995)
Issue (Month): 2 Year 1995 (December)
Pages: 327-355

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Handle: RePEc:udc:esteco:v:22:y:1995:i:2:p:327-355

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Web page: http://www.econ.uchile.cl/
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Keywords: Export-led hypothesis; growth.;

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Cited by:
  1. Fernando Seabra & Jaqueson K. Galimberti, 2011. "Conditioned Export-Led Growthhypothesis: A Panel Threshold Regressions Approach," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 049, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. Jaime Andrés Collazos & Pedro Luis Rosero, 2010. "¿Posee el Valle del Cauca una economía transformadora de importaciones orientadas a la Exportación?," DOCUMENTOS DE POLÍTICAS PÚBLICAS 006880, UNIVERSIDAD ICESI.

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