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Export-total factor productivity growth nexus in East Asian economies


  • Hailin Liao
  • Xiaohui Liu


Despite increasing interest in the relationship between trade and macro-economic performance in development economics, very limited studies have been conducted on the causal links between exports and productivity growth in Asian economies. This article examines empirically the interplay between exports and productivity growth for eight East Asian economies in a multivariate framework by applying bound tests and modified Wald tests. The results indicate that causality is bidirectional in the case of Korea, Singapore and Taiwan, while unidirectional from productivity to exports for Mainland China, Hong Kong, Indonesia, Malaysia and the Philippines. These findings provide little support for the conventional export-led growth hypothesis.

Suggested Citation

  • Hailin Liao & Xiaohui Liu, 2009. "Export-total factor productivity growth nexus in East Asian economies," Applied Economics, Taylor & Francis Journals, vol. 41(13), pages 1663-1675.
  • Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1663-1675
    DOI: 10.1080/00036840601032193

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    1. repec:sdo:regaec:v:26:y:2017:i:3_5 is not listed on IDEAS
    2. Mah Jai S., 2015. "Export Expansion and Economic Growth in Tanzania," Global Economy Journal, De Gruyter, vol. 15(1), pages 173-185, March.
    3. Parjiono & A.B.M. Rabiul Alam Beg & Richard Monypenny, 2013. "The driving forces of the level and the growth rate of real per capita income in Indonesia," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2389-2400, June.

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