IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v5y1998i7p423-428.html
   My bibliography  Save this article

Export-led growth hypothesis for Australia: an empirical re-investigation

Author

Listed:
  • Jordan Shan
  • Fiona Sun

Abstract

The export-led growth hypothesis is tested using quarterly time series data for Australia by constructing a vector autoregression (VAR) model. The Granger no-causality procedure developed by Toda and Yamamoto (Journal of Econometrics, 66, 225-50, 1995) was applied to test the causality link between real export growth and real manufacturing output growth. Three distinct features in this paper stand out compared to earlier studies on the case of Australia: first, we have gone beyond the traditional two-variable relationship by building a five-variable VAR model in the production function context to avoid the possible specification bias; second, we follow Riezman, Whiteman and Summers (Empirical Economics, 21, 77-110, 1996) to test the hypothesis while controlling for the growth of imports to avoid producing a spurious causality result; and finally, the methodology by Toda and Yamamoto is expected to improve the standard F -statistics in the causality test process. Two principle results emerge from our research. First, no evidence was found for the export-led growth hypothesis in Australia; second, when applying a longer lag structure, we found evidence of a one-way Granger causality running from manufacturing growth to exports growth.

Suggested Citation

  • Jordan Shan & Fiona Sun, 1998. "Export-led growth hypothesis for Australia: an empirical re-investigation," Applied Economics Letters, Taylor & Francis Journals, vol. 5(7), pages 423-428.
  • Handle: RePEc:taf:apeclt:v:5:y:1998:i:7:p:423-428
    DOI: 10.1080/135048598354555
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/135048598354555&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/135048598354555?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:5:y:1998:i:7:p:423-428. 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: . General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.