Further evidence on the Export-Led Growth Hypothesis

Abstract

The Export-Led Growth Hypothesis (ELGH) is an interesting subject of research in the field of applied economics. This paper investigates the causal links between exports and output growth in the empirical framework of the Greek economy, using error-correction modelling and multivariate Granger causality. A sensitivity analysis based on impulse responses is implemented to check the robustness of the results. The estimation procedure generates robust results, indicating that the ELGH is not valid in the case of Greece. Furthermore, the empirical findings suggest a strong and consistent causation from output growth to export performance in the long-run.

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

“…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 the case of GLE, growth creates new needs, which cannot initially be covered by the local production, increasing the country's imports for capital equipment and improving the existing technology (Kindleberger 1962).…”

A Further Step into the ELGH and TLGH for Spain and Italy

“…Recent empirical articles (Panas and Vamvoukas (2002) for Greece, Abual-Foul (2004) for Jordan, Al Mamun and Nath (2005) for Bangladesh and Awokuse (2005a,b) for Japan and Korea, respectively) analyse the causality between exports and economic growth in a bivariate context. Only a few studies employ a multivariate framework; amongst others Islam (1998) and Ghirmay et al (2001).…”

Efectos de las exportaciones en el crecimiento económico de México: Un análisis de cointegración, 1929-2009

“…Entre los estudios que se han realizado para otros países se encuentran Michaely (1977), Balassa (1978), Tyler (1981), Balassa (1985), Chow (1987), Darrat (1987), Khan y Saqib (1993), Singupta y España (1994), McCarville y Nnadozie (1995), Thornton (1996), Panas y Vamvoukas (2002), Abual-Foul (2004), Awokuse (2004) y Maneschiöld (2008) entre muchos otros. Todos ellos han encontrado una relación positiva entre el crecimiento económico y las exportaciones y, de esta forma, evidencia a favor de la hipótesis export-led growth.…”