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Export Instability, Investment and Economic Growth in Asian Countries: A Time Series Analysis

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  • Sinha, D.

Abstract

In this study, we look at the relationship between export stability, investment and economic growth in nine Asian countries using time series data. The few previous time series studies in this area have not paid any attention to stationarity and cointegration issues. We find that in most cases, the variables are non-stationary in their levels and not cointegrated. These results raise serious doubts about the results of these studies. The results are not uniform across countries casting doubts about the validity of the numerous cross-section studies. For Japan, Malaysia, Philippines and Sri Lanka, we find a negative relationship between export instability and economic growth. For (South) Korea, Myanmar, Pakistan and Thailand, we find a positive relationship between the two variables. For India, we get mixed results. In most cases, economic growth is found to be positively associated with domestic investment.

Suggested Citation

  • Sinha, D., 1999. "Export Instability, Investment and Economic Growth in Asian Countries: A Time Series Analysis," Papers 799, Yale - Economic Growth Center.
  • Handle: RePEc:fth:yalegr:799
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    Cited by:

    1. Aiello, Francesco, 2002. "Financial stabilization systems, economic growth of developing countries and EU’s STABEX," MPRA Paper 38099, University Library of Munich, Germany.
    2. Shrabanti Maity, 2013. "India’s Leather and Manufactures Export in the Scenario of WTO: An Analysis Trend and Structural Shift," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 11(3 (Fall)), pages 261-281.
    3. Muhammad Aslam Chaudhary & Amjad Naveed, 2003. "Export Earnings, Capital Instability and Economic Growth in South Asia," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 8(1), pages 65-89, Jan-June.
    4. Dipendra Sinha, 2007. "Effects of Volatility of Exports in the Philippines and Thailand," The IUP Journal of Financial Economics, IUP Publications, vol. 0(3), pages 78-83, September.
    5. Sarada, C. & Ravinsankar, T. & Krishnan, M. & Anandanarayanan, C., 2006. "Indian Seafood Exports: Issues of Instability, Commodity Concentration and Geographical Spread," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(2).
    6. Olajide S. Oladipo, 2017. "Export Instability and Economic Growth in Nigeria: A Time Series Analysis," Research Papers RP_322, African Economic Research Consortium.

    More about this item

    Keywords

    TRADE ; ECONOMIC GROWTH ; ECONOMIC MODELS;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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