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A new causality test for the analysis of the export-growth nexus

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  • Furuoka, Fumitaka

Abstract

This paper proposes a new causality test or a Fisher-type causality test to examine empirically the export-growth nexus. To empirically demonstrate this new causality test procedure, the Fisher causality test is used to examine the exports-growth nexus in four Asian economies, namely Indonesia, Philippines, Hong Kong and Japan. The new causality test could detected a complex situation in the export-growth nexus in Asia. The Fisher causality test clearly pointed out that there are unidirectional causality from economic growth to exports in Indonesia, bidirectional causality between exports and economic growth in Philippines, no causality relationship between exports and economic growth in Hong Kong and Japan.

Suggested Citation

  • Furuoka, Fumitaka, 2018. "A new causality test for the analysis of the export-growth nexus," MPRA Paper 91467, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91467
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    File URL: https://mpra.ub.uni-muenchen.de/91467/1/MPRA_paper_91467.pdf
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    References listed on IDEAS

    as
    1. Perron, Pierre & Vogelsang, Timothy J., "undated". "Level Shifts and Purchasing Power Parity," Instructional Stata datasets for econometrics levshift, Boston College Department of Economics.
    2. Fumitaka Furuoka, 2018. "Exports and economic growth in Sub-Saharan Africa: New insights from innovative econometric methods," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(7), pages 830-855, October.
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    4. Judith Giles & Cara Williams, 2001. "Export-led growth: a survey of the empirical literature and some non-causality results. Part 2," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 9(4), pages 445-470.
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    6. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    7. Fumitaka Furuoka, 2017. "A new approach to testing unemployment hysteresis," Empirical Economics, Springer, vol. 53(3), pages 1253-1280, November.
    8. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-552, September.
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    Cited by:

    1. Arsalan Ahmed & Faisal Nawaz & Muhammad Ali & Muhammad Younus & Shahida Wizarat, 2023. "Opportunities for Pakistan’s Exports Growth through OBOR: Case of Central Asian Republics," Journal of Economic Impact, Science Impact Publishers, vol. 5(1), pages 32-41.

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    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

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