Export-led growth hypothesis: evidence for Chile

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis study examines the export-led growth hypothesis using annual time series data from Chile.It addresses the problem of specification bias under which previous studies have suffered and focuses on the impact of manufactured and primary exports on the economic growth. In order to investigate if and how manufactured and mining exports affect economic growth via increases in productivity, the study uses the Toda and Yamamoto (1995) procedure for testing for Granger non-causality in Vector Autoregressive models that involve variables that are integrated of an arbitrary order and that are possibly cointegrated. The estimation results support the export-led growth hypothesis for Chile and at the same time point out to the differentiated impact of manufactured and primary exports on the economic growth.

Export-led growth in the UAE: multivariate causality between primary exports, manufactured exports and economic growth

“…These findings are consistent with previous studies, which argued that manufactured exports offer knowledge spillover effects and other externalities, enhancing economic growth (e.g. Fosu 1990;Abu-Qarn and Abu-Bader 2004;Herzer et al 2006;Siliverstovs and Herzer 2006). The short-run causality analysis based on disaggregated exports confirms the existence of bidirectional causality between manufactured exports and economic growth, which is consistent with previous studies (e.g.…”

“…Most of these studies conclude that a unidirectional causality runs from exports to economic growth, confirming the validity of the ELG hypothesis (Yanikkaya 2003;Shirazi and Manap 2004;Abou-Stait 2005;Siliverstovs and Herzer 2006;Gbaiye et al 2013). Other studies argue that causality runs from growth to exports or conclude that there is a bidirectional causal relationship between exports and economic growth (Panas and Vamvoukas 2002;Awokuse 2007;Narayan et al 2007;Elbeydi et al 2010;Mishra 2011).…”

“…In particular, Fosu (1990) indicates that primary exports have negligible impact on economic growth among the less developed countries (LDCs), while the manufacturing export sector has a positive and significant effect on economic growth. In addition, Siliverstovs and Herzer (2006) find that a unidirectional Granger causality exists from manufactured exports to economic growth, while primary exports do not cause economic growth in Chile. The more recent study of Hosseini and Tang (2014) indicate that non-oil exports have a positive effect on economic growth of Iran, while oil and gas exports have negative effect on economic growth.…”

“…This study tests the ELG hypothesis assuming that the aggregate production of the economy can be expressed as a function of physical capital, human capital, primary exports, manufactured exports and imports, following Siliverstovs and Herzer (2006).…”

“…Moreover, previous studies investigate the impact of export composition on economic growth, indicating that not all exports contribute equally to economic growth (Fosu 1990;Herzer et al 2006;Siliverstovs and Herzer 2006;Hosseini and Tang 2014). The reliance of economies on exports of primary products can slow down economic growth, while the expansion of manufactured exports can have a positive and significant effect on economic growth.…”