Export-Led Growth Hypothesis In The Mena Region: A Multivariate Cointegration, Causality And Stability Analysis
Empirical evidence supporting the export-led growth (ELG) hypothesis has been mixed and inconclusive. Some studies may have been misspecified since they tested the ELG hypothesis using bivariate models. Others used multivariate cointegration framework but presumed (either explicitly or implicitly) stability of the cointegrating relations. This study examines the ELG hypothesis for eight Middle East and North Africa (MENA) countries in a multivariate framework by including terms of trade as a third variable. We utilize Johansen and Juselius cointegration procedure and error correction modeling to test the ELG hypothesis. The empirical evidence supports the existence of a “stable” long-run equilibrium relationship among real output, real exports, terms of trade, and finds strong support for the ELG hypothesis in all but one of the MENA countries analyzed.
Volume (Year): 10 (2010)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.usc.es/economet/eaa.htm|
|Order Information:|| Web: http://www.usc.es/economet/info.htm Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aamer Abu-Qarn & Suleiman Abu-Bader, 2001.
"The Validity of the ELG Hypothesis in the MENA Region: Cointegration and Error Correction Model Analysis,"
134, Ben-Gurion University of the Negev, Department of Economics.
- Aamer Abu-Qarn & Suleiman Abu-Bader, 2004. "The validity of the ELG hypothesis in the MENA region: cointegration and error correction model analysis," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1685-1695.
- Abu-Qarn, Aamer & Abu-Bader, Suleiman, 2001. "The Validity of the ELG Hypothesis in the MENA Region: Cointegration and Error Correction Model Analysis," MPRA Paper 1116, University Library of Munich, Germany.
- Warne, Anders & Bruggeman, Annick & Donati, Paola, 2003. "Is the demand for euro area M3 stable?," Working Paper Series 0255, European Central Bank.
- Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
- Bassam Abual-Foul, 2004. "Testing the export-led growth hypothesis: evidence from Jordan," Applied Economics Letters, Taylor & Francis Journals, vol. 11(6), pages 393-396.
- Riezman, R.G. & Summers, P.M. & Whiteman, C.H., 1991.
"The Engine of Growth or Its Handmaiden? A Time Series Assessment of Export-Led Growth,"
92-27, University of Iowa, Department of Economics.
- Riezman, Raymond G & Whiteman, Charles H & Summers, Peter M, 1996. "The Engine of Growth or Its Handmaiden? A Time-Series Assessment of Export-Led Growth," Empirical Economics, Springer, vol. 21(1), pages 77-110.
- Riezman, R. & Whiteman, C. & Summers, P.M., 1995. "The Engine of Growth or Its Handmaiden? A Time Series Assessment of Export-Led Growth," Working Papers 95-16, University of Iowa, Department of Economics.
- Raymond Riezman & Charles Whiteman & Peter M. Summers, 1996. "The Engine of Growth or Its Handmaiden? A Time-Series Assessment of Export-Led Growth," GE, Growth, Math methods 9602002, EconWPA.
- Carsten Trenkler, 2008.
"Determining p-values for systems cointegration tests with a prior adjustment for deterministic terms,"
Springer, vol. 23(1), pages 19-39, January.
- Trenkler, Carsten, 2004. "Determining p-values for Systems Cointegration Tests With a Prior Adjustment for Deterministic Terms," Papers 2004,37, Humboldt-Universität Berlin, Center for Applied Statistics and Economics (CASE).
- Jamal HUSEIN, 2008. "Traditional Export Demand Relation: A Cointegration and Parameter Constancy Analysis," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 5(2).
When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:10:y:2010:i:2_13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (M. Carmen Guisan)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.