Empirical investigation of exports and economic growth. Peru microeconomic constraints to growth the evidence. Imported intermediate inputs and domestic product growth. Are exports a reliable source of economic growth in mena. Author links open overlay panel bela balassa show more. Firm exports and multinational activity under credit constraints kalina manova, shangjin wei, and zhiwei zhang nber working paper no. Pavel gertler,national bank of slovakia the main message from the classical model of international trade is that growth in trade leads by way of comparative advantages to stronger economic performance in the future. The african case article pdf available in world development 186. On the other hand, outwardlooking development or export led growth etc strategies. Foreign direct investment, exports and economic growth. For the causal analysis between exports and economic growth, recent empirical studies have adopted the causality approach suggested by. For the united states, it was found that economic growth causes export growth, while the opposite is true for taiwan. Subcontractors and service companies to our three sector classifications are also not.
An analysis of the relationship between exports and growth. The effect of exports and imports on economic growth. F10,f14,f23,f36,g32 abstract this paper provides firmlevel evidence that credit constraints restrict international trade flows and affect the pattern of foreign direct investment. Import substitution industrialisation and economic growth. A conglomerate merger is a merger between two entities in unrelated industries. One, referred to as the conventional neoclassical model, assumes that y 0, and thus presents gdp growth as the result of capital and labor growth only. Import substitution industrialisation and economic growth evidence from the group of brics countries aregbeshola r. However, when he combine this tradedistortion measure with a measure of. Pdf relationship between exports and economic growth of.
Evidence from four asian countries, romanian economic journal, department of international business and economics from the academy of economic studies bucharest, vol. Pdf the dynamics of relationship between exports and economic. Apr 04, 2016 the economic development of developing countries has been associated with their exports, and the evidence suggests that exchange rates influence the exports. Cointegration and causality between exports and economic. Abstract the nature of the relationship between exports and countrys economic growth has been one of the most debated topic in the recent past, yet with little consensus. Peru microeconomic constraints to growth the evidence from the manufacturing sector june 15, 2004 latin america and the caribbean region poverty reduction and economic management department and financial, private sector and infrastructure department bolivia, ecuador, peru and venezuela country management unit document of the world bank.
Social iqi and political iqi, and then combine them to obtain iqi. The focus is on the relationship between exports and economic growth, but the discussion explores the wider context in both countries. We used the panel data to investigate potential granger causality among the gdp, exports and exchange rates in asian countries over the period 19702009. Exports and economic growth in asian developing countries. F10,f14,f23,f36,g32 abstract this paper provides firmlevel evidence that credit constraints restrict international trade flows and. This paper investigates the relationship between exports and economic growth in a group of eleven developing countries that have already established an industrial base. An analysis of the relationship between exports and economic growth in 11 developing countries that have already established an industrial base considers manufactured exports and total exports separately, adjusting for domestic and foreign investment. In indicating that export grohth favorably alects the rate of economic growth over and above the contrj butions of domestic and foreign capital and labor, the estimates presented in this paper provide evidence on the benefits of export orientation as compared to policies oriented towards import substitution. Cointegration and causality between exports and economic growth. Egypt, jordan, morocco, tunisia, and turkey, using the granger causality technique.
Goldberg, amit khandelwal, nina pavcnik, and petia topalova nber working paper no. Research online is the open access institutional repository for the university of wollongong. The first channel is the classical theory of ricardo, where the two countries through trade and by the law of comparative advantage and. Gdp in the 1990s in china on the basis of new proposed estimation method, when both. The successful records of the four dragons or even four tigers have received much attention in the literature on economic growth and have revived the debate on the effectiveness of outward. The relationship between export growth and economic growth has been a popular subject of debate among development economists. Import substitution policies as the means to stimulate economic growth. For central and eastern european cee3 countries, there is an obvious lack of studies that examine the effect of exports on economic growth by using the latest time series techniques.
This document includes an executive summary of that debate and the documents from the meeting. This paper analyzes the theories behind the role that exports play in growth, and seeks to use regression analysis for four african. Central to this debate is the question of whether strong economic performance. The first channel is the classical theory of ricardo, where the two countries through trade and by the law of comparative advantage and specialization, experiencing economic growth.
This study provides the evidence of exportled growth hypothesis. This will be determined by establishing whether a correlation of any nature exists and to examine the strength of the relationship, if any. Further evidence from asia fayyaz ahmad school of economics lanzhou university, china muhammad umar draz corresponding author department of management and humanities universiti teknologi petronas, malaysia suchang yang school of economics lanzhou university, china abstract. To examine the relationship between exports, imports and economic growth. Information technology it is an example of a general purpose technology that has the potential to play an important role in economic growth, as well as other dimensions of economic and social development. Adewale department of business management, college of economic and management sciences, university of south africa, unisa 0003, preller street, muckleneuk ridge, p. The relationship between export and economic growth in. This paper reinvestigates empirically the exportled growth elg hypothesis for five countries in the mena region. The relationship among exports, imports and economic growth.
Relationship between exports, imports, and economic growth in. The purpose of this paper is to examine the role of export growth linkage in india, pakistan, the philippines, malaysia, and thailand on the basis of time series data from 1973 to 1993. Therefore, the government involves import trade barriers as tariffs, import quotas, etc. Pdf despite the increasing role of foreign direct investment fdi in economic. Ekanayake1 this paper uses cointegration and errorcorrection models to analyze the causal relationship between export growth and economic growth in eight asian developing countries using annual data from 1960 to 1997. This suggests that the interrelationship between foreign direct investment, exports and economic growth has yet to be analyzed in the same framework.
It presents an analytical framework that is motivated by the empirical evidence and embeds the. Evidence from nigeria mukhtar wakil lawan department of economics, modibbo adama university of technology, yola, adamawa state, nigeria abstract the study examines the long run link between export components of oil, nonoil sector and economic growth in. The relationship between trade openness and economic growthis well debated and well researched topic in thetrade. The economic development of developing countries has been associated with their exports, and the evidence suggests that exchange rates influence the exports. Firm exports and multinational activity under credit constraints. We do not take into account alternative energy since the sector, though high growth in recent years yet has an insignificant share of the electricity production eurostat, 2008. The role of exports in african economic development.
The relationship between export and economic growth in libya. This paper studies the nexus between exports, imports, and economic growth in turkey. Exports and economic growth further evidence bela balassa johns hopkins university, baltimore, md 21218, u. Further results show that population density and investment are statistically insignificant. On the other hand, outwardlooking development or export led growth etc strategies involve strategies supporting manufacturing sectors with a. Determinants of export growth at the extensive and intensive. Reviewing the literature it seems that over optimism has taken place of pragmatism only based on economic numbers and hence there is a need to highlight the major hurdles in the path of china. Through the use of descriptive statistics and econometric analysis, this paper assesses the trade competitiveness of pakistan using microdata the case of pakistan is interesting since the countrys recent trade policy has reverted to a protectionist path since the mid2000s and trade performance is stagnating, as indicated by a decrease in its. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The first two arguments are based on a shortrun macro model of the keyne sian type, which is by its demand orientation not suitable to explain economic growth. Using the grangercausality approach, we find strong evidence for exportled growth in mauritius, but no significant evidence of any causal relationship in tunisia.
Recently, dhawan and biswal 1999 examined the relationship between export and the economic growth in india by employing the vector autoregression var model over the period from 1961 to 1993, using the variables of real gdp, real exports and terms of trade in the var model. F1,f,f14 abstract new goods play a central role in many trade and growth models. Determinants of mergers and acquisitions in the energy industry. Annual data for the periods between 1960 and 2015 was tested by practicing johansen cointegration analysis of vector auto regression model and the grangercausality tests. The study was guided by the following specific objectives. The nexus between exchange rate, exports and economic. The purpose of our paper is to further investigate the quality of exports hypothesis by. Economic growth via economic openness occurs through two channels. In recent years, the trade literature provides a number of empirical evidence to support the. The present approach tries to combine both strands of the literature. Received july 1977, revised version received september 1977 this paper investigates the relationship between exports and economic growth in a group of.
Further evidence from oecd countries article in applied economics 3516. The empirical results indicate that exports have a positive and significant impact on economic growth when a country has achieved some level of economic. The oecd competition committee debated economic evidence in merger analysis in february 2011. Further evidence from asia find, read and cite all the research you. Separate consideration is given to manufactured and to total exports.
To the best of our knowledge, this is the first paper to analyse scale economies in indian bank mergers, which constitutes a premerger analysis and then examine the impact of mergers on shareholders. For the causal analysis between exports and economic growth, recent empirical studies have adopted the causality approach suggested by granger 1969 and sims 1972. The purpose of this paper is to examine the role of exportgrowth linkage in india, pakistan, the philippines, malaysia, and thailand on the basis of time series data from 1973 to 1993. Using the grangercausality approach, we find strong evidence for exportled growth in mauritius, but no significant evidence of. The principal reason for a conglomerate merger is utilization of. Most of these arguments are, however, not convincing. Relationship between exports, imports, and economic growth in france. The nexus between exchange rate, exports and economic growth. The relationship between exports and growth is an important one in economics, particularly for developing nations that seek to improve the livelihoods of their citizens through economic reform. Relationship between exports, imports, and economic growth. Given the above mentioned shortcomings associated with the methodology used in these studies, the observed difference may be attributed to methodological flaws. Exports and economic growth in south korea and japan ntu irep. Exports, domestic demand and economic growth in china.
The purpose of this paper is to test the probity of the exportled growth elg hypothesis for five emerging economies of asia namely india, indonesia, korea, malaysia, and the philippines. The existing studies on this issue are focused only on one up to. Thus policies geared towards the development of the oil and nonoil sectors will have a positive effect on the economy and thereby resulting to an increase in the gross domestic product. The main objective of the study was to investigate the relationship between exports, imports and economic growth in kenya. Similar method is further employed by dutt and ghosh 1996 to provide evidence of no causal relationship between the two variables.
The past, present, and future of economic growth global citizen. Request pdf on jan 1, 2016, fayyaz ahmad and others published the nexus between exchange rate, exports and economic growth. In indicating that export grohth favorably alects the rate of economic growth over and above the contrj butions of domestic and foreign capital and labor, the estimates presented in this paper provide evidence on the benefits of exportorientation as compared to policies oriented towards import substitution. A company uses this type of merger in order to use the resulting ability to use the same sales and distribution channels to reach the customers of both businesses. Export earnings instability and economic growth in nigeria. Growth, import openness, oecd, endogeneity, instrument, regression. Pdf trade, foreign direct investment and economic growth in. Some empirical studies have investigated this interrelationship for asian and nonafrican countries. Earlier investigations have concentrated on the effect of export expansion on economic growth while ignoring the importance of the stability of such relationship. The contribution of industry and agriculture exports to.
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