IDEAS home Printed from https://ideas.repec.org/a/taf/japsta/v40y2013i11p2332-2340.html
   My bibliography  Save this article

A revisitation of the export-led growth hypothesis in Malaysia using the leveraged bootstrap simulation and rolling causality techniques

Author

Listed:
  • Chor Foon Tang

Abstract

According to the neoclassical growth theory, export expansion could stimulate economic growth because it promotes specialisation and raises factor productivity. Thus, many developing countries depend heavily on export-orientated businesses to accelerate economic growth. Nevertheless, the causality evidences on the export-led growth hypothesis remain elusive and controversial. Two primary empirical questions emerged in the international trade and development literatures are: (a) Does the export-led growth hypothesis still valid? (b) Why causality evidences are inconsistent among studies? In light of these, the present study attempts to contribute to the export-led growth literature by using the Malaysian data set. This study covers the monthly data set from January 1975 to August 2010. To achieve the objectives of this study, we employ the leveraged bootstrap simulation causality test and also the rolling regression-based causality tests. The leveraged bootstrap simulation causality results suggest that exports and output growth are bilateral causality in nature. However, the rolling causality results demonstrate that the causality inferences for export-led growth hypothesis are unstable over time. For this reason, policy initiative to promote exports may not always stimulate economic growth and development in Malaysia. Therefore, balancing policy is urged to ensure that the economic growth in Malaysia can be materialised.

Suggested Citation

  • Chor Foon Tang, 2013. "A revisitation of the export-led growth hypothesis in Malaysia using the leveraged bootstrap simulation and rolling causality techniques," Journal of Applied Statistics, Taylor & Francis Journals, vol. 40(11), pages 2332-2340, November.
  • Handle: RePEc:taf:japsta:v:40:y:2013:i:11:p:2332-2340
    DOI: 10.1080/02664763.2013.810195
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02664763.2013.810195
    Download Restriction: Access to full text is restricted to subscribers.

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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shahbaz, Muhammad & Hussain Shahzad, Syed Jawad & Jammazi, Rania, 2016. "Nexus between U.S Energy Sources and Economic Activity: Time-Frequency and Bootstrap Rolling Window Causality Analysis," MPRA Paper 68724, University Library of Munich, Germany, revised 08 Jan 2016.
    2. Aviral Kumar Tiwari & Alexander Ludwig, 2014. "The export-led growth hypothesis for India: examining causality by a new approach in the time-frequency domain," Applied Economics Letters, Taylor & Francis Journals, vol. 21(18), pages 1297-1301, December.
    3. Tang, Chor Foon & Lai, Yew Wah & Ozturk, Ilhan, 2015. "How stable is the export-led growth hypothesis? Evidence from Asia's Four Little Dragons," Economic Modelling, Elsevier, vol. 44(C), pages 229-235.
    4. repec:eee:eneeco:v:68:y:2017:i:c:p:327-339 is not listed on IDEAS
    5. repec:eco:journ1:2017-03-59 is not listed on IDEAS

    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:japsta:v:40:y:2013:i:11:p:2332-2340. 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). General contact details of provider: http://www.tandfonline.com/CJAS20 .

    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 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.

    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.