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On the Condition for Export-Led Growth

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  • Edward F. Buffie

Abstract

In this paper, the author explores the conditions under which favorable export shocks produce export-led growth in a three-sector, three-factor, general equilibrium model that allows for endogenous capital accumulation. The export shock takes the form of either a resource discovery or an increase in the world market price of the export good. While surprisingly simple conditions define the outcome in many cases, there is no general presumption that an export boom will act as an engine of growth; much depends on the precise structural characteristics of the economy.

Suggested Citation

  • Edward F. Buffie, 1992. "On the Condition for Export-Led Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 211-225, February.
  • Handle: RePEc:cje:issued:v:25:y:1992:i:1:p:211-25
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    Citations

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    Cited by:

    1. Arshia Amiri & Ulf-G Gerdtham, 2012. "Granger Causality Between Exports, Imports and GDP in France: Evidance from Using Geostatistical Models," Economic Research Guardian, Weissberg Publishing, vol. 2(1), pages 43-59, May.
    2. Sayef Bakari, 2017. "The Long Run and Short Run Impacts of Exports on Economic Growth: Evidence from Gabon," Economic Research Guardian, Weissberg Publishing, vol. 7(1), pages 40-57, June.
    3. Stefanescu, Razvan & Dumitriu, Ramona, 2014. "Investigation on the relationship between Romanian foreign trade and industrial production," MPRA Paper 62547, University Library of Munich, Germany.
    4. Reppas, Panayiotis A. & Christopoulos, Dimitris K., 2005. "The export-output growth nexus: Evidence from African and Asian countries," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 929-940, November.
    5. Mojsoska-Blazevski, Nikica & Petreski, Marjan, 2010. "Western Balkan’s trade with the EU and CEFTA-2006: Evidence from Macedonian data," MPRA Paper 41942, University Library of Munich, Germany.
    6. Qazi Muhammad Adnan Hye & Houda Ben Haj Boubaker, 2011. "Exports, Imports and Economic Growth: An Empirical Analysis of Tunisia," The IUP Journal of Monetary Economics, IUP Publications, vol. 0(1), pages 6-21, February.
    7. Bakari, Sayef, 2017. "The Three-Way Linkages between Export, Import and Economic Growth: New Evidence from Tunisia," MPRA Paper 81080, University Library of Munich, Germany.
    8. Ramos, Francisco F. Ribeiro, 2001. "Exports, imports, and economic growth in Portugal: evidence from causality and cointegration analysis," Economic Modelling, Elsevier, vol. 18(4), pages 613-623, December.
    9. repec:wfo:wstudy:19262 is not listed on IDEAS
    10. Onafowora, Olugbenga A. & Owoye, Oluwole, 1998. "Can Trade Liberalization Stimulate Economic Growth in Africa?," World Development, Elsevier, vol. 26(3), pages 497-506, March.
    11. Marjan Petreski, 2007. "Export-Led Growth Hypothesis: Empirical Evidence From Macedonia," Journal Articles, Center For Economic Analyses, pages 33-43, June.

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