Exports, imports, and economic growth in semi-industrialized countries

Esfahani, Hadi Salehi

doi:10.1016/0304-3878(91)90068-7

Cited by 253 publications

(187 citation statements)

References 16 publications

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“…The result shows that export significantly affected Domestic Product Per Capital estimated around $3,500 person (Nigeria economy). Erfani (1999) examined the causal relationship between economic performance and exports over the period of 1965 to 1995 for several developing countries in Asia and Latin America. The result showed the significant positive relationship between export and economic growth.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

“…Awoluse (2008) argued that an increase in foreign demand for domestic exportable poroducts can cause an overall growth in output via an increase in employment and income in the exportable sectors. Balassa (1985) and Erfani (1999), discussed how exports can provide foreign exchange which is critical to imports of capital and intimidate goods that in turn raise capital formation beneficial for meeting expansion of domestic production and thus stimulate output growth.…”

Section: Export and Economic Growthmentioning

confidence: 99%

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Impact of International Trade on Economic Growth in Nigeria (1988-2012)

Adeleye¹,

Adeteye²,

Adewuyi³

2015

International Journal of Financial Research

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The study examines the impact of international trade on economic growth in Nigeria, using net export (i.e total export less total import) and Balance of Payment as proxies for international trade while Gross Domestic Product represent economic growth. The study employed regression analysis as the method of analysis using co-integration and error correction modeling techniques to find the long-run relationship between economic performance and international trade. Only Total Export (TEX) remains positive and significant while others remain insignificant, which means, Nigeria is running a monocultural economy where only oil act as the sole support of the economy without tangible support from other sectors such as industrial/manufacturing and agriculture. The government should therefore pursue aggressive diversification of the economy by putting in place policies and incentives that will boost non-oil export, the manufacturing sector and overall promote the industrial growth of Nigeria.

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Section: Empirical Literature Reviewmentioning

confidence: 99%

Section: Export and Economic Growthmentioning

confidence: 99%

Impact of International Trade on Economic Growth in Nigeria (1988-2012)

Adeleye¹,

Adeteye²,

Adewuyi³

2015

International Journal of Financial Research

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“…It had been found in empirical results of prior literature (Fung et al 1994, Esfahani 1991, Anderson and Marcouiller (2002, Yasar, M. and Paul, C. 2007, Schott, P. 2010, Eichengreen et al 2004 that there exists cointegration among exports, imports and industrial outputs in many countries, including both advanced and industrializing economies. Thus, it is assumed that exports and imports are correlated and there is a positive relationship between exports and imports.…”

Section: Data and Variable Definitionsmentioning

confidence: 99%

What Explains German Export Performances? Spatial Econometric Evidences: 1995 to 2014

Yang¹,

Liu²,

Mai³

2017

IBR

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German exports achieved outstanding performances, yet there is lack of research utilizing spatial econometric evidences. This paper explores four explanations and evaluates their empirical contributions: (i) German exports were highly correlated to its imports. Thus, its exports built upon bilateral trade flows. (ii) German exported to countries with high GDP per capita with the capability and the demand of high-quality and less price-elastic goods. (iii) It exported to countries with economic integration with other countries such as free trade agreements. (iv) Its exports broadened from Europe to other countries in America and the Asia Pacific regio n with increasing total export-volume growth. Thus, German exports benefited from the free trade flow to a few EU member countries, those are close geographically and culturally to Germany. The empirical evidence also points out that the changing geospatial distribution of German exports is another key factors to its export success. The spatial Durbin model was identified to be the best fit model of all after a series of tests. Decisive determinants of its exports performance were found through the estimation besides geospatial analyses of its exports by employing Moran's I.Keywords: spatial econometrics, spatial effects, German exports distribution, exports determinants IntroductionGerman exports have long been well documented, and their performances and competitiveness widely studied. However, there is a significant lack of research on how Germany achieved outstanding export performances using spatial econometric evidences. This paper aims to fill the gap in the existing literature by investigating the changing geospatial distribution of its exports and identifying determinants to its outstanding performances over decades by applying spatial econometric models.We first employ Moran's I which is a useful indicator of the spatial association. The statistic of Moran's I can illustrate and show the decomposition of the association into spatial clusters (it is the "country" in the case of this study) and, therefore, it is more effectively observe and assess changing geospatial distribution of German exports during the period of this study.Then we examined the explanatory power of the spatial lag model (SLM) or the spatial error model (SEM), it is much better off than the conventional Pooled Ordinary Least Squares (OLS) by comparing the R-squared of each. The log-likelihood test, the LR test, and the robust LR test were employed to determine if the SLM is more favored than the SEM for the panel data of this study. The Hausman test was also utilized to decide that the fixed effects model is more appropriate than the random effects model. Wald test was used to determine that the spatial Durbin model (SDM) is more favored than the SLM.The SDM was finally identified to be the best fit model of all after the series of aforementioned tests. Decisive factors of German exports performances were found through this study besides geospatial analyses of the exports by emplo...

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“…In the presence of a high price-elasticity of export demand, devaluations of currency or depreciations of the real exchange rate increase the value of exports and thus the amount of imports that can be bought from abroad, while they negatively affect the amount of goods that can be imported if export demand is price inelastic (see for example Bahmani-Oskooee and Miteza, 2002). If imports are investment goods, as we will assume in this paper, 1 devaluations will increase investment when export demand is price elastic and reduce it otherwise (Khan and Knight, 1988;Esfahani, 1991). If these real devaluations or exchange rate depreciations take place for a capital goods importing country, then export demand elasticities are likely to have a significant impact on (future) domestic labour productivity growth through exports of primary commodities or labour-intensive goods and technology imports.…”

Section: Introductionmentioning

confidence: 95%

“…In this process, since export revenues depend mainly on foreign demand, income and price elasticities of export demand are important determinant of growth for several reasons: First, as argued by Khan and Knight (1988), Esfahani (1991) or Wacziarg (2001), the imported inputs invested in domestic production and paid for by exports are the major mechanism explaining the link between exports and growth in the short and the long run. For a developing country that mostly relies on imported capital goods for production technology, if imported capital goods are paid for by export revenues, then income and price elasticities of export demand determine the change in the amount and value of machinery and equipment that can be imported F o r P e e r R e v i e w 2 for investment.…”

Section: Introductionmentioning

confidence: 99%

Export demand elasticities and productivity as determinants of growth: estimates for Mauritius

Habiyaremye

Ziesemer

2012

Applied Economics

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In this paper, we combine the export-led and import-led growth hypotheses in a growth model in which the importation of foreign capital goods and the demand elasticities of own export products explain the growth opportunities and the technical progress of developing countries. This model, based on imported capital goods uses Mauritius' data on capital investment, employment, export partners' growth and terms of trade to estimate price and income elasticities of export demand, total-factor productivity growth and economies of scale. These elasticities are then used to assess how the growth in export partners' income is converted into domestic growth. The implications of the presence of low or high export demand elasticities are discussed by relating them to various strands of trade and growth literature. Based on the results of this estimation, we also calculate steady-state growth rates, engine and handmaiden effects of growth as well as the dynamic steady-state gains from trade for this latecomer export economy. The implications of steady state results are also discussed in the light of the Mauritian employment and growth perspectives.Keywords: Growth model, trade in capital goods, exports, total factor productivity JEL classification code: O11, O19, O41, F43 Abstract. In this paper, we combine the export-led and import-led growth hypotheses in a growth model in which the importation of foreign capital goods and the demand elasticities of own export products explain the growth opportunities and the technical progress of developing countries. This model, based on imported capital goods uses Mauritius' data on capital investment, employment, export partners' growth and terms of trade to estimate price and income elasticities of export demand, total-factor productivity growth and economies of scale. These elasticities are then used to assess how the growth in export partners' income is converted into domestic growth. The implications of the presence of low or high export demand elasticities are discussed by relating them to various strands of trade and growth literature. Based on the results of this estimation, we also calculate steady-state growth rates, engine and handmaiden effects of growth as well as the dynamic steady-state gains from trade for this latecomer export economy. The implications of steady state results are also discussed in the light of the Mauritian employment and growth perspectives.

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Exports, imports, and economic growth in semi-industrialized countries

Cited by 253 publications

References 16 publications

Impact of International Trade on Economic Growth in Nigeria (1988-2012)

Impact of International Trade on Economic Growth in Nigeria (1988-2012)

What Explains German Export Performances? Spatial Econometric Evidences: 1995 to 2014

Export demand elasticities and productivity as determinants of growth: estimates for Mauritius

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