Investigating the Causal Relationship between Export and Economic Growth: A Malaysian Perspective

Does causality exist between exports and economic development? Evidence from selected EU countries

“…The authors noticed that economic reform helped to reallocate resources to more productive uses. The research by Abdullah et al (2017) also detected a feedback between variables in terms of an export-economic growth nexus in Malaysia. The researchers concluded that a rise in export levels can serve to boost economic performance and vice-versa.…”

“…The available scientific literature contains a mixed degree of evidence regarding the inter-linkage between exports and economic development. Exports are a primary factor which can serve to promote economic performance (Saaed & Hussain, 2015;Abdullah et al, 2017). Much research has been done regarding the causal links between the expansion of exports and economic growth.…”

“…Some studies tend to explore the inter-linkages through the framework of neo-classical growth, revealing that exports are an essential factor promoting economic performance (Dritsaki, 2013;Trošt & Bojnec, 2015;Ee, 2016;Sultanuzzaman et al, 2019). An expansion of exports can influence higher employment levels, a greater international demand and an increase in output (Dizaji & Badri, 2014;Abdullah et al, 2017;Dinc & Gokmen, 2019). In general, exports can boost economic growth in several ways, such as the allocation of resources to competitive economic activities, generating employment opportunities for unskilled labourers, improving equality, and producing greater foreign direct investment in addition to technology transfers into the countries (Khoi & Chaudhary, 2018).…”

“…In the mid-twentieth century alone there were four different approaches developed regarding the interlinkage of exports and economic growth, namely: 1) exports-led growth; 2) growth-driven exports; 3) bidirectional causality; and 4) a neutral approach. Previous studies (Konya, 2006;Gurgul & Lach, 2010;Mishra, 2011;Tekin, 2012;Hailegiorgis, 2012;Mehmood, 2013;Dreger & Herzer, 2013;Mtaturu, 2016;Etale & Etale, 2016;Vianna, 2016;Acaravci & Shafiullah et al, 2017;Abdullah et al, 2017;Kalaitzi & Cleeve, 2017;Khoi & Chaudhary, 2018;Dinc & Gokmen, 2019;Kibria & Hossain, 2020) have revealed different aspects of exports -economic development nexus. Taking into consideration the differences in empirical results, there is a notable lack of research in EU countries that compares the results obtained across the countries in question with those of previous studies.…”

Impact of Export, Import, and Population on Economic Growth in Malaysia

“…In previous studies, gross domestic product is a famous indicator to measure economic growth [2][3][4][5][6][7][8][9]. Moreover, based on Ali et al [10] and Thavarajah and Chin [11], the real gross domestic product became attention to measure the economic growth.…”