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Do exports cause growth? Some evidence for the new EU members

Author

Listed:
  • Oscar Bajo-Rubio

    (Universidad de Castilla-La Mancha)

  • Carmen Díaz-Roldán

    (Universidad de Castilla-La Mancha)

Abstract

In this paper, we analyze the relationship between international trade and economic growth, from the point of view of one of the most traditional hypothesis within this field, namely, the export-led growth hypothesis. To this end, we apply Grangercausality tests, in a cointegration framework, to data on exports and GDP of the eight CEECs that became members of the EU in 2004.

Suggested Citation

  • Oscar Bajo-Rubio & Carmen Díaz-Roldán, 2011. "Do exports cause growth? Some evidence for the new EU members," Working Papers 11-05, Asociación Española de Economía y Finanzas Internacionales.
    • Handle: RePEc:aee:wpaper:1105
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    References listed on IDEAS

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    1. Hildegart Ahumada & Pablo Sanguinetti, 1995. "The export-led growth hypothesis revisited: theory and evidence," Estudios de Economia, University of Chile, Department of Economics, vol. 22(2 Year 19), pages 327-355, December.
    2. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
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    4. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-1393, September.
    5. Osterwald-Lenum, Michael, 1992. "A Note with Quantiles of the Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test Statistics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 461-472, August.
    6. Jung, Woo S. & Marshall, Peyton J., 1985. "Exports, growth and causality in developing countries," Journal of Development Economics, Elsevier, vol. 18(1), pages 1-12.
    7. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
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    9. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
    10. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    11. Dan Ben-David, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 653-679.
    12. Oscar Bajo-Rubio & Carmen Diaz-Roldan, 2009. "Does the balance of payments constrain economic growth? Some evidence for the new EU members," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 41-46.
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    Cited by:

    1. NguyenHuu, Tams & Karaman Örsal, Deniz Dilan, 2020. "A new and benign hegemon on the horizon? The Chinese century and growth in the Global South," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-35.
    2. Bajo-Rubio, Oscar & Ramos-Herrera, María del Carmen, 2024. "Does international trade promote economic growth? Europe, 19th and 20th centuries," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 561-575.
    3. Bibhuti Ranjan Mishra, 2020. "Role of External and Domestic Demand in Economic Growth: A Study of BRICS Countries," Global Business Review, International Management Institute, vol. 21(2), pages 547-566, April.
    4. Stamule Tănase, 2017. "Trade comparative analysis: Republic of Moldova and other relevant countries," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 569-576, July.
    5. David Aristei & Davide Castellani & Chiara Franco, 2013. "Firms’ exporting and importing activities: is there a two-way relationship?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 55-84, March.
    6. Oscar Bajo-Rubio, 2022. "Exports and long-run growth: The case of Spain, 1850-2020," Journal of Applied Economics, Taylor & Francis Journals, vol. 25(1), pages 1314-1337, December.

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    Keywords

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    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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