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Exports, Investments and Economic Growth: an Empirical Investigation of the Three Baltic Countries

Author

Listed:
  • Dritsaki Chaido

    (Department of Applied Informatics, University of Macedonia)

  • Vazakidis Athanasios

    (Department of Applied Informatics, University of Macedonia)

  • Adamopoulos Antonios

    (Department of Applied Informatics, University of Macedonia)

Abstract

This paper investigates the relationship among exports, investments and economic growth, in the three Baltic countries which have recently joined the European Union. The purpose of this paper is to examine the long run relationship between these variables using quarterly data for the period 1992:I-2000:IV and applying the co-integration analysis as suggested by Johansen and Juselious. Then a trivariate autoregressive vector model (VAR) is used to estimate the short and long run relationships of variables of this model. The results of this paper suggested that the exports growth in combination with the increase of investments have a positive effect on the economic growth of the three Baltic countries.

Suggested Citation

  • Dritsaki Chaido & Vazakidis Athanasios & Adamopoulos Antonios, 2004. "Exports, Investments and Economic Growth: an Empirical Investigation of the Three Baltic Countries," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 4(2), pages 72-79, July.
    • Handle: RePEc:bic:journl:v:4:y:2004:i:2:p:72-79
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    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2004.10840412
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    References listed on IDEAS

    as
    1. Chow, Peter C. Y., 1987. "Causality between export growth and industrial development : Empirial evidence from the NICs," Journal of Development Economics, Elsevier, vol. 26(1), pages 55-63, June.
    2. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
    3. Basu, Parantap & McLeod, Darryl, 1991. "Terms of trade fluctuations and economic growth in developing economies," Journal of Development Economics, Elsevier, vol. 37(1-2), pages 89-110, November.
    4. De Gregorio, Jose, 1992. "The effects of inflation on economic growth : Lessons from Latin America," European Economic Review, Elsevier, vol. 36(2-3), pages 417-425, April.
    5. De Gregorio, Jose, 1992. "Economic growth in Latin America," Journal of Development Economics, Elsevier, vol. 39(1), pages 59-84, July.
    6. Bardhan, Pranab K & Lewis, Sydney, 1970. "Models of Growth with Imported Inputs," Economica, London School of Economics and Political Science, vol. 37(148), pages 373-385, November.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Amin Sokhanvar & Glenn P. Jenkins, 2021. "An Efficient Long-Run Economic Growth Strategy for Estonia," Development Discussion Papers 2020-23, JDI Executive Programs.
    2. Attila Jambor & Nuno Carlos Leitao, 2017. "Economic Growth and Sustainable Development: Evidence from Central and Eastern Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 171-177.

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    More about this item

    Keywords

    exports; investment; economic growth; co-integration; Baltic countries;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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