Export-Led Growth Hypothesis in Developing Countries: Econometric Evidence from Bangladesh

The objective of this paper is to test the validity of the Export-led Growth Hypothesis (ELGH) in the Malaysian economy. Malaysia has always been considered to have attained its growth primarily through exports (Okposin, Bassey, Hamid, Halim, and Boon, 1999; Mun, 2008; Mahathir, 1990). In the past, several studies on this topic have been conducted but their analyses were limited to relationships using Bound-testing, Autoregressive –Distributed Lag (ARDL) and the Toda Yamamoto analysis. Empirical data and analysis in our paper cover a 21 – year span and quarterly time-series data (1991:Q1 – 2012:Q4) are used to test this ELG hypothesis. Also, many dynamic econometric measures including the Augmented Dickey Fuller (ADF) and Phillip – Perron (PP) unit root tests, Cointegration test as well as the Vector Error Correction model (VEC) for the long run have been applied. Based on these generic models, both real exports and capital stock (productivity) are found to have stimulated positive adjustments to economic growth in the long run whereas real exchange rate is found to have influenced economic growth negatively. Overall, our conclusion is that the ELG hypothesis seems applicable to Malaysia in the long run.

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Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

International Letters of Social and Humanistic Sciences ◽

10.18052/www.scipress.com/ilshs.14.1 ◽

2013 ◽

Vol 14 ◽

pp. 1-19 ◽

Cited By ~ 3

Author(s):

Mohsen Mehrara ◽

Amin Haghnejad ◽

Jalal Dehnavi ◽

Fereshteh Jandaghi Meybodi

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Foreign Direct Investment ◽

Strong Evidence ◽

Direct Investment ◽

The Other ◽

Fdi Inflows ◽

Long Run ◽

Short Run ◽

Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

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EXPORT-LED GROWTH HYPOTHESIS: FURTHER ECONOMETRIC EVIDENCE FROM SOUTH ASIA

The Developing Economies ◽

10.1111/j.1746-1049.2005.tb00955.x ◽

2005 ◽

Vol 43 (4) ◽

pp. 472-488 ◽

Cited By ~ 30

Author(s):

NASIM SHAH SHIRAZI ◽

TURKHAN ALI ABDUL MANAP

Keyword(s):

South Asia ◽

Econometric Evidence ◽

Growth Hypothesis

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Remittance-led growth hypothesis: a conceptual analysis

Corporate Ownership and Control ◽

10.22495/cocv11i1c3art5 ◽

2013 ◽

Vol 11 (1) ◽

pp. 342-347

Author(s):

Kunofiwa Tsaurai

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Conceptual Analysis ◽

Reasonable Doubt ◽

Annual Data ◽

Framework Analysis ◽

Integral Element ◽

The Relationship ◽

Growth Hypothesis

This research centered on the conceptual and empirical analysis of the remittance-led growth hypothesis. There exist four views with regard to the relationship between remittances and economic growth and these include the remittances-led growth, growth-led remittances, feedback view and the neutrality view. Remittance-led growth mentions that remittances inspire economic growth whilst the growth-led remittances view says that economic growth attracts more remittances into the country. The feedback view suggests that both remittances and economic growth promotes each other whilst neutrality hypothesis stipulates that there exists no relationship at all between remittances and economic growth. Majority of literature concur that remittances plays a significant role in boosting economic growth especially in developing countries. It is against this backdrop that this study focuses on conceptually and empirically analyzing the remittance-led growth hypothesis. Trend analysis between remittances and economic growth for Botswana as a case study was done using time series annual data ranging from 1980 to 2011. The literature conceptual framework analysis shows beyond any reasonable doubt that indeed remittances are an integral element of economic growth especially for developing countries. The study therefore recommends nations especially developing countries to make available the necessary infrastructure that attracts personal remittance inflows from its citizens working in other countries in order to boost economic growth

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THE TOURISM-LED GROWTH HYPOTHESIS IN TRANSITION ECONOMIES? EMPIRICAL EVIDENCE FROM A PANEL DATA ANALYSIS

GeoJournal of Tourism and Geosites ◽

10.30892/gtg.38412-746 ◽

2021 ◽

Vol 38 (4) ◽

pp. 1076-1082

Author(s):

Le Thanh TUNG ◽

Keyword(s):

Developing Countries ◽

Panel Data ◽

Development Strategy ◽

Transition Economies ◽

Transition Countries ◽

Policy Implications ◽

Research Database ◽

Fisher Test ◽

Long Run ◽

Growth Hypothesis

Tourism has been considered as a potential factor in development strategy in many developed and developing countries worldwide. Besides, tourism is really a key economic sector in some countries. This study aims to examine the tourism-led growth hypothesis for some transition countries, which includes seven high growth economies Bulgaria, Hungary, Poland, Romania, Russia, Ukraine and Vietnam. The research database is collected by an annual form in the period of 1995-2019. These economies are considered successful transitional cases in the global economy, however, the tourism-led growth hypothesis in these countries has been received only a little evidence from academics in recent years. The Johansen-Fisher test and the OLS estimation are applied in the quantitative process. There are some new findings from the empirical results. First, the Johansen-Fisher test confirms the existence of long-run cointegration relationships between tourism (denoted by the tourism revenue and the tourism arrivals) and economic growth in the panel data sample of countries. Second, the long-run coefficients of the tourism variables are positive and significant that concludes the tourism-led growth hypothesis in these transition countries. The contribution of the study is not only to fill the empirical research gap by the estimated results from a group of transition economies but also to confirms the tourism-led growth platform as an efficient development strategy for other developing countries. Furthermore, our study suggests some policy implications for policymakers to use tourism as a key development sector in these countries in the future.

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Landholding. Rural Fertility and Internal Migration in Developing Countries: Econometric Evidence from Cross-National Data

The Pakistan Development Review ◽

10.30541/v24i2pp.125-149 ◽

1985 ◽

Vol 24 (2) ◽

pp. 125-149 ◽

Cited By ~ 2

Author(s):

R. E. Bilsborrow ◽

C. R. Winegarden

Keyword(s):

Developing Countries ◽

Policy Implications ◽

Reduced Form ◽

Urban Migration ◽

Section Data ◽

Econometric Evidence ◽

Rural Urban Migration ◽

The Impact ◽

Statistical Results ◽

Cross National

We develop an empirical model of the interaction of rural fertility and rural urban migration which incorporates the effects of landholding patterns. Cross section data for 26 developing countries are used to test the model. The statistical results support the hypothesis of a positive relationship between fertility and out-migration in the rural sector and lend credence to some of the propositions regarding the impact of landholding patterns. A reduced form of the model is derived from the statistical results, and its policy implications are considered.

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