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Econometric Analysis of the Export-led Growth Hypothesis: Evidence for BIMP-EAGA Countries

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  • Furuoka, Fumitaka

Abstract

This paper employs several econometric methods to test the validity of the "export-led growth" hypothesis in three BIMP-EAGA countries, i.e., the Philippines, Indonesia, and Malaysia. Firstly, the study uses Johansen cointegration test and Granger causality test to examine the relationship between export and gross domestic product (GDP) in each of these countries. Secondly, panel unit root test and panel cointegration test are used to examine the relationship between the variables in these three BIMP-EAGA countries as a whole. The econometric tests of the individual countries indicate that there has been no significant relationship between the size of national income and the amount of export in each of these countries. The panel data analysis produces a similar result.

Suggested Citation

  • Furuoka, Fumitaka, 2009. "Econometric Analysis of the Export-led Growth Hypothesis: Evidence for BIMP-EAGA Countries," Philippine Journal of Development PJD 2007 Vol. XXXIV No. 2, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:pjdevt:pjd_2007_vol__xxxiv_no__2-b
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    File URL: https://www.pids.gov.ph/publication/philippine-journal-of-development/econometric-analysis-of-the-export-led-growth-hypothesis-evidence-for-bimp-eaga-countries
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    References listed on IDEAS

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    7. Lorna E. Amrinto & Hector O. Zapata, 2006. "A semiparametric assessment of export-led growth in the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 43(2), pages 1-22, December.
    8. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    9. Judith Giles & Cara Williams, 2001. "Export-led growth: a survey of the empirical literature and some non-causality results. Part 1," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 9(3), pages 261-337.
    10. Jaleel Ahmad & Somchai Harnhirun, 1996. "Cointegration and Causality between Exports and Economic Growth: Evidence from the ASEAN Countries," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 413-416, April.
    11. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    12. Pedroni, Peter, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-670, Special I.
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    Cited by:

    1. Agustiar, Memet, 2013. "Structural Transformation in West Kalimantan Towards ASEAN Economic Community 2015," MPRA Paper 66552, University Library of Munich, Germany, revised Apr 2013.
    2. Memet Agustiar, 2013. "Structural transformation in west Kalimantan towards ASEAN economic community 2015," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(1), pages 69-79, April.
    3. Sigit Setiawan, 2017. "Middle Income Trap and Infrastructure issues In Indonesia: A Strategic Perspective," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 42-48.
    4. Fatma Zeren & Burcu Kilinc Savrul, 2013. "Revisited Export-Led Growth Hypothesis For Selected European Countries: A Panel Hidden Cointegration Approach," Istanbul University Econometrics and Statistics e-Journal, Department of Econometrics, Faculty of Economics, Istanbul University, vol. 18(1), pages 134-151, May.
    5. Richard Ballester & Joy Sinay, 2013. "An empirical analysis of the export-led growth (ELG) hypothesis in the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 50(1), pages 83-110, June.

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