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Export led growth vs. growth led exports: LDCs experience

Author

Listed:
  • Mohsen Bahmani-Oskooee
  • Claire Economidou

    (The University)

Abstract

Previous studies that investigated the export led growth hypothesis, relied upon Granger or Sims causality detection approach. Since these approaches employ first differenced variables, any inference could be short-run in nature. In this paper we consider the relation between exports and economic growth to be a long-run phenomenon. After applying Johansen's cointegration technique to establish the long-run relationship between exports and output (in presence of other factors), we rely upon weak exogeneity tests proposed by Johansen to establish exogeneity of exports or output. Annual data over 1960-99 period from 61 countries are used for analysis. The results are country specific and there is no uniform pattern.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Claire Economidou, 2009. "Export led growth vs. growth led exports: LDCs experience," Journal of Developing Areas, Tennessee State University, College of Business, vol. 42(2), pages 179-212, January-M.
    • Handle: RePEc:jda:journl:vol.42:year:2009:issue2:pp:179-212
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    Citations

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    Cited by:

    1. Ousama Ben-Salha & Abir Abid & Ghassen El Montasser, 2023. "Linear and Nonlinear Causal Linkages Between Exports and Growth in Next Eleven Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1194-1226, June.
    2. Ramona Dumitriu & Razvan Stefanescu, 2015. "The Relationship Between Romanian Exports And Economic Growth After The Adhesion To European Union," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 17-26.
    3. Soo Khoon Goh & Koi Nyen Wong & Chee Lam Yew, 2018. "Are Merchandise Exports and FDI Inflows an Engine of Growth for ASEAN-10 Countries? New Evidence Using the Pooled Mean Group Estimation Method," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(4), pages 414-430, November.
    4. CHISTRUGA Boris & CRUDU Rodica, 2017. "Specifics Of Industrialization In Central And Eastern European Countries With Small Economy," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 69(4), pages 53-67, November.
    5. Md Ali Emam & Markus Leibrecht & Tinggui Chen, 2021. "Fish Exports and the Growth of the Agricultural Sector: The Case of South and Southeast Asian Countries," Sustainability, MDPI, vol. 13(20), pages 1-14, October.
    6. Bibhuti Ranjan Mishra, 2020. "Role of External and Domestic Demand in Economic Growth: A Study of BRICS Countries," Global Business Review, International Management Institute, vol. 21(2), pages 547-566, April.
    7. Nicholas M. Odhiambo, "undated". "Is Export-Led Growth Hypothesis Still Valid For Sub-Saharan African Countries? New Evidence From Panel Data Analysis," Working Papers AESRI01, African Economic and Social Research Institute (AESRI).
    8. Adeolu O Adewuyi & Olabanji B Awodumi, 2020. "Environmental Pollution, Energy Resource Import, Economic Growth and Financial Development: Theoretical Exploration and Empirical Evidence from Nigeria," International Journal of Environmental Sciences & Natural Resources, Juniper Publishers Inc., vol. 26(1), pages 26-36, October.
    9. N.M. Odhiambo, 2021. "Is Export-Led Growth Hypothesis Still Valid for Sub-Saharan African Countries? New Evidence from Panel Data Analysis," Working Papers AESRI-2021-02, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    10. Christian Dreger & Dierk Herzer, 2013. "A further examination of the export-led growth hypothesis," Empirical Economics, Springer, vol. 45(1), pages 39-60, August.
    11. Tekin, Rıfat Barış, 2012. "Economic growth, exports and foreign direct investment in Least Developed Countries: A panel Granger causality analysis," Economic Modelling, Elsevier, vol. 29(3), pages 868-878.
    12. Mohamad Ahmad Abou Hamia, 2024. "The integration of developing countries into world technology markets: cause or effect of total factor productivity?," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(1), pages 879-902, February.
    13. HAZMAN, Samsudin & OMAR, Khatijah & ABD HALIMB, Abi sofian & SYAZWAN SHAMSUDIN, Muhammad Saiful, 2021. "Export Led Growth Via Intra-Regional Trading An Econometric Analysis Of Asean, Eu, Nafta, Mercosur And Comesa," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 21(2), pages 5-28.
    14. Dumitriu, Ramona & Stefanescu, Razvan & Nistor, Costel, 2010. "Exports as an engine for the economic growth: the case of Romania," MPRA Paper 36581, University Library of Munich, Germany, revised 10 Feb 2012.
    15. Stefanescu, Razvan & Dumitriu, Ramona, 2014. "Investigation on the relationship between Romanian foreign trade and industrial production," MPRA Paper 62547, University Library of Munich, Germany.
    16. Nicholas M. Odhiambo, 2021. "Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 31(1), pages 77-93, April.
    17. Yaya Keho, 2018. "The Causal Nexus between Exports and Economic Growth: Evidence on the Role of Omitted Variables," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 335-344.
    18. Rasha Istaiteyeh & Farah Najem & Nahil Saqfalhait, 2023. "Exports- and Imports-Led Growth: Evidence from a Time Series Analysis, Case of Jordan," Economies, MDPI, vol. 11(5), pages 1-20, May.
    19. Nicholas M Odhiambo, 2021. "Is Export-Led Growth Hypothesis Still Valid For Sub-Saharan African Countries? New Evidence From Panel Data Analysis," Working Papers AERI0121, African Economic and Social Research Institute (AESRI), revised 25 Aug 2021.

    More about this item

    Keywords

    Export Growth; Income Growth; Cointegration;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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