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Imports-economic growth nexus: ARDL approach to cointegration

Author

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  • Islam, Faridul
  • Adnan Hye, Qazi Muhammad
  • Shahbaz, Muhammad

Abstract

This paper implements Auto-Regressive Distributed Lags (ARDL) to cointegration to explore long-run relation; and Granger procedure within Vector Error Correction Model (VECM) to test direction of causality between imports and economic growth for a sample of forty–ten each from high; upper-middle; lower-middle; and low-income–nations. We find long-run bidirectional causality in high-income nations except Japan. For others, we find mixed results .

Suggested Citation

  • Islam, Faridul & Adnan Hye, Qazi Muhammad & Shahbaz, Muhammad, 2011. "Imports-economic growth nexus: ARDL approach to cointegration," MPRA Paper 28462, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28462
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    Cited by:

    1. Ambar, Rabnawaz, 2015. "Corruption, Inequality and Economic Growth," MPRA Paper 70375, University Library of Munich, Germany, revised 2015.
    2. Rony Masud & Jihan Binte Enam, 2023. "Consideration of the impact of the transition from a cash crop economy on the carbon footprint," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 4(4(72)), pages 40-54, August.
    3. Evans, Olaniyi, 2013. "Testing Finance-Led, Export-Led and Import-Led Growth Hypotheses on Four Sub-Saharan African Economies," MPRA Paper 52460, University Library of Munich, Germany.
    4. P. K. Mishra, 2012. "The Dynamics of the Relationship between Imports and Economic Growth in India," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(1), pages 57-79, June.
    5. Tsangyao Chang & Beatrice D. Simo-Kengne & Rangan Gupta, 2013. "The Causal Relationship between Exports and Economic Growth in the Nine Provinces of South Africa: Evidence from Panel-Granger Causality Tests," Working Papers 201319, University of Pretoria, Department of Economics.

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    More about this item

    Keywords

    Imports; ARDL;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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