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Export-led growth vs growth-led exports: what matters for the Brazilian growth experience after trade liberalization?

Author

Listed:
  • Ricardo Azevedo Araujo

    (University of Brasilia, Brazil)

  • Joanílio Rodolpho Teixeira

    (University of Brasilia, Brazil)

  • Cristiane Soares

    (Brazilian Institute of Geography and Statistics, Rio de Janeiro, Brazil)

Abstract

In this paper, we study the Brazilian growth experience after trade liberalization by testing both the export-led growth (ELG) and the growth-led exports (GLE) hypotheses through econometric tests between exports and gross domestic output (GDP). Although the paper provides further evidence that after openness neither ELG nor GLE hypotheses can satisfactorily explain the Brazilian growth experience, when disaggregated data is adopted it is possible to identify some sectors such as intermediate goods, commodities, and manufactured products whose performance is strongly correlated with real GDP. These results suggest that a disaggregated approach enhances our understanding of the Brazilian growth experience after trade liberalization.

Suggested Citation

  • Ricardo Azevedo Araujo & Joanílio Rodolpho Teixeira & Cristiane Soares, 2015. "Export-led growth vs growth-led exports: what matters for the Brazilian growth experience after trade liberalization?," Review of Keynesian Economics, Edward Elgar Publishing, vol. 3(1), pages 108-128, January.
  • Handle: RePEc:elg:rokejn:v:3:y:2015:i:1:p108-128
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    More about this item

    Keywords

    Export-led growth; growth-led exports; cumulative causation; Granger causality test;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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