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Export-led growth hypothesis: some empirical testing

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  • Satya Paul
  • Kabir Chowdhury

Abstract

The hypothesis of export-led growth is tested using annual time series data for Australia. The analysis reveals that both exports and the GDP series in log levels have unit roots but they do not cointegrate. However, there is evidence of Granger causality running from exports to GDP growth implying that expansion of exports promotes economic growth in Australia.

Suggested Citation

  • Satya Paul & Kabir Chowdhury, 1995. "Export-led growth hypothesis: some empirical testing," Applied Economics Letters, Taylor & Francis Journals, vol. 2(6), pages 177-179.
  • Handle: RePEc:taf:apeclt:v:2:y:1995:i:6:p:177-179 DOI: 10.1080/135048595357384
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    References listed on IDEAS

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    Cited by:

    1. Saima Siddiqui & Sameena Zehra & Sadia Majeed & Muhammad Sabihuddin Butt, 2008. "Export-Led Growth Hypothesis in Pakistan: A Reinvestigation Using the Bounds Test," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(2), pages 59-80, Jul-Dec.
    2. Jordan Shan & Fiona Sun, 1998. "On the export-led growth hypothesis for the little dragons: An empirical reinvestigation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, pages 353-371.
    3. Bilas Vlatka & Franc Sanja & Bošnjak Mile, 2015. "Examining the Export-led Growth Hypothesis: The case of Croatia," Naše gospodarstvo/Our economy, De Gruyter Open, pages 22-31.
    4. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
    5. Mohammed Ibrahim El-Sakka & Naief Hamad Al-Mutairi, 2000. "Exports and Economic Growth: The Arab Experience," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(2), pages 153-169.

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