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Export-Led Growth Hypothesis: Empirical Evidence From Macedonia

Author

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  • Marjan Petreski

    (Ministry of Finance; Macroeconomic Policy Department; Macroeconomic Modeling and Projections Division; Junior associate; Euro College - University Studies in Kumanovo, Business Administration and Economics Department; Lecturer in International finance; Monetary policy and banking)

Abstract

The aim of this study is to empirically test the export-led growth hypothesis in the Republic of Macedonia, as small and open economy. In other words, the question trailed is whether by export promotion the country could impinge on its overall economic development. For that purpose, quarterly data for the period 1998-2006 are plugged into the production function, in which the exports variable plays dominant role, utilized in cointegration testing and vector error correction model. The core findings are supportive to the ELG in Macedonia in the short- and long-run simultaneously. Also, gross capital formation is significant in explaining growth in Macedonia.

Suggested Citation

  • Marjan Petreski, 2007. "Export-Led Growth Hypothesis: Empirical Evidence From Macedonia," Journal Articles, Center For Economic Analyses, pages 33-43, June.
    • Handle: RePEc:cmk:journl:y:2007:p:33-43
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Export-led growth; Macedonia; Cointegration analysis; Vector error correction model;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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