Export-led growth hypothesis for Australia: an empirical re-investigation
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.
Volume (Year): 5 (1998)
Issue (Month): 7 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEL20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEL20|
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: (Chris Longhurst)
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.