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This article examines the causality between export expansion and economic growth in Myanmar using annual time series data for the period from 1981 to 2015. We use the Johansen cointegration test and the Toda-Yamamoto Granger causality test to examine the export-led growth hypothesis in Myanmar. The results show that there is a uni-directional causality running from export expansion to economic growth in Myanmar. Our results support the export-led growth hypothesis in Myanmar. This finding is very important because it indicates that exports are an important factor to promote economic growth. Economic growth can be generated not only by increasing the amounts of labour and capital within the country but also by expanding exports. Exports can perform as an ‘engine of growth’ in Myanmar as in the case of East Asian economies. Therefore, the Myanmar government should actively promote an export expansion strategy to stimulate economic growth by improving trade liberalization and trade facilitation while reducing tariffs and eliminating non-tariff barriers.

This study investigates whether currency devaluation is expansionary for Laos. We combine cointegration and vector error correction method (VECM) Granger causality analysis to examine long-run and causal relationships among selected macroeconomic variables. Our results confirm the presence of cointegration among the variables and support expansionary effects of currency devaluation on economic growth of Laos. Government spending increases economic growth but money supply decreases the growth. World income is inversely linked with Laos’ economic growth. Our evidence supports the devaluation-led growth hypothesis.

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