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The validity of the ELG hypothesis in the MENA region: cointegration and error correction model analysis

  • Aamer Abu-Qarn
  • Suleiman Abu-Bader

The export-led growth (ELG) hypothesis is examined for nine Middle East and North Africa (MENA) countries in three-variable vector autoregressive and error correction models. When considering total exports, the results reject the ELG hypothesis in almost all of these countries. When only manufactured exports are examined, no support is found for ELG in countries with relatively low shares of manufactured exports in total merchandise exports but strong support in countries with relatively high shares. These findings suggest that promoting exports may contribute to economic growth only after a certain threshold of manufactured exports has been reached.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 15 ()
Pages: 1685-1695

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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1685-1695
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