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Manufactured Exports, Capital Good Imports, and Economic Growth: Experience of Mexico and Brazil

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  • M. Imam Alam

Abstract

This paper examines the export-led growth hypothesis using data from two Latin American countries, Mexico and Brazil, in a production function framework. It addresses some of the limitations of existing methods of testing the hypothesis. Contrary to popular belief, we do not find any evidence to support the hypothesis. Imported capital goods appear to be very significant in the growth process of these two countries. To check the robustness of the results, this study uses two different cointegrating procedures to determine the number of cointegrating vectors, and three different methods to estimate the parameters of the long-run relations. The results are robust across estimation techniques. [F43, F14, O47, O54]

Suggested Citation

  • M. Imam Alam, 2003. "Manufactured Exports, Capital Good Imports, and Economic Growth: Experience of Mexico and Brazil," International Economic Journal, Taylor & Francis Journals, vol. 17(4), pages 85-105.
  • Handle: RePEc:taf:intecj:v:17:y:2003:i:4:p:85-105
    DOI: 10.1080/10168730300080028
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    1. repec:gam:jecomi:v:6:y:2018:i:2:p:22-:d:139116 is not listed on IDEAS
    2. Dierk HERZER & Felicitas NOWAK-LEHMANN D. & Boriss SILIVERSTOVS, 2006. "Export-Led Growth In Chile: Assessing The Role Of Export Composition In Productivity Growth," The Developing Economies, Institute of Developing Economies, vol. 44(3), pages 306-328.
    3. repec:dug:actaec:y:2016:i:5:p:266-278 is not listed on IDEAS
    4. Emine KILAVUZ & Betül ALTAY TOPCU, 2012. "Export and Economic Growth in the Case of the Manufacturing Industry: Panel Data Analysis of Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 2(2), pages 201-215.
    5. Vergil , Hasan & Sinay, Mehmet, 2013. "An Investigation of the Relationship between Foreign Trade and Economic Growth in terms of Knowledge Transfer: The Case of Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 4(1), pages 1-59, January.

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