Is The Export-Lead Growth Hypothesis Valid For Canada?
Abstract
Empirical evidence linking exports to economic growth has been mixed and inconclusive. This study re-examine the export-led growth (ELG) hypothesis for Canada by testing for Granger causality from exports to national output growth using vector error correction models (VECM) and the augmented vector autoregressive (VAR) methodology developed in Toda and Yamamoto (1995). Application of recent developments in time series modeling and the inclusion of relevant variables omitted in previous studies help clarify the contradictory results from prior studies on the Canadian economy. The empirical results suggest that a long-run steady state exists among the model's six variables and that Granger causal flow is unidirectional from real exports to real GDP.Download Info
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Paper provided by University of Delaware, Department of Food and Resource Economics in its series Staff Papers with number 15823.Length:
Date of creation: 2002
Date of revision:
Handle: RePEc:ags:udelsp:15823
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Related research
Keywords: International Development; International Relations/Trade; F43; C32;Other versions of this item:
- Titus O. Awokuse, 2003. "Is the export-led growth hypothesis valid for Canada?," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 126-136, February.
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
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Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Seema Narayan & Paresh Kumar Narayan & Sagarika Mishra, 2010.
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