scholarly journals Exports, Growth and Causality: An Application of Co-integration and Error-correction Modelling

1995 ◽  
Vol 34 (4III) ◽  
pp. 1001-1012 ◽  
Author(s):  
Ashfaque H. Khan ◽  
Afia Malik ◽  
Lubna Hasan
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Development Strategy ◽  
Economies Of Scale ◽  
Export Performance ◽  
Export Promotion ◽  
Output Growth ◽  
Export Growth ◽  
Productive Capacity ◽  
The Relationship

The relationship between export expansion and economic growth has been examined extensively during the last two decades in the context of the suitability of the alternative development strategies. The decade of the 1970s witnessed an emerging consensus in favour of export promotion as development strategy. Such a consensus was based on the following facts. First, higher export earnings working through alleviating foreign exchange constraints may enhance the ability of a developing country to import more industrial raw materials and capital goods, which, in turn, may expand its productive capacity. Secondly, the competition in export markets abroad may lead to the exploitation of economies of scale, greater capacity utilisation, efficient resource allocation, and an acceleration of technical progress in production. Thirdly, given the theoretical arguments mentioned above, the observed strong correlation between exports and economic growth was interpreted as empirical evidence in favour of export promotion as a development strategy. The empirical evidence in favour of export promotion rests on the general approach where real growth is regressed on contemporaneous real export, growth and the significance of the export growth coefficient supports the proposition that export growth causes output growth. Balassa (1978); Feder (1982); Fosu (1990); Kavoussi (1984); Tyler (1981) and Ram (1985) have followed such an approach.1 Khan and Saqib (1993), on the other hand, examined the relationship between exports and economic growth by constructing a simultaneous equation model comprising equations for exports and economic growth. They found a strong association between export performance and GDP growth for Pakistan, and that more than 90 percent of the contribution of exports on economic growth was indirect in nature.

scholarly journals The Growth Impact of Exports in South Asian Countries

2005 ◽  
Vol 44 (4II) ◽  
pp. 901-919 ◽  
Author(s):  
Abid Hameed ◽  
Muhammed Ali Chaudhary ◽  
Kiran Younas Khan
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
South Asian ◽  
Economies Of Scale ◽  
Raw Materials ◽  
Import Substitution ◽  
Export Promotion ◽  
Productive Capacity ◽  
Asian Countries ◽  
Promotion Strategy

How exports affect growth has attracted considerable attention of the researchers in recent years. The failure of the import substitution policy during 1950s and 1960s to engender growth, led the South Asian countries to adopt export promotion strategy in the 70s and 80s to foster their economic growth. Many factors have caused this shift. Firstly, higher export earnings are expected to enhance the ability of a developing country to import additional industrial raw materials and capital goods, which in turn, are likely to expand its productive capacity. Secondly, the competition in the exports market may allow for greater capacity utilisation, higher economies of scale, greater specialisation on the basis of comparative advantage and accelerated technical progress in production for greater contribution to increased employment. Thirdly, strong correlation observed between exports and economic growth prompts export promotion further as part of the development strategy [Khan, et al. (1995)].

scholarly journals Openness and Economic Growth in Pakistan

2003 ◽  
Vol 42 (4II) ◽  
pp. 795-807 ◽  
Author(s):  
Musleh-ud Din ◽  
Ejaz Ghani ◽  
Omer Siddique
Keyword(s):  
Economic Growth ◽  
Economies Of Scale ◽  
New Technologies ◽  
Empirical Studies ◽  
Productive Capacity ◽  
International Diffusion ◽  
World Markets ◽  
Liberal Trade ◽  
Productivity Gains ◽  
The Relationship

Trade and growth theories generally predict a positive relationship between openness to international trade and economic growth. There are a number of channels through which openness is thought to influence economic growth. First, a liberal trade regime enhances efficiency through greater competition and improved resource allocation. Second, greater access to world markets allows economies to overcome size limitations and benefit from economies of scale. Third, imports of capital and intermediate goods can contribute to the growth process by enlarging the productive capacity of the economy. Fourth, trade can lead to productivity gains through international diffusion and adoption of new technologies. Empirical studies on the relationship between openness and economic growth have largely supported the view that openness has a favourable impact on economic growth. It is not surprising, then, that the proposition that more open economies tend to grow faster has gained wide acceptance in academic as well as policy circles. The objective of this paper is to examine the relationship between openness and economic growth in the context of Pakistan’s economy. Section 2 reviews the literature on openness and economic growth. Section 3 provides an overview of trade liberalisation in Pakistan. Data and methodology are described in Section 4, while Section 5 presents the empirical results. Section 6 concludes the discussion.

ANALISIS PENGARUH EKSPOR TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2017 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ari Mulianta Ginting
Keyword(s):  
Economic Growth ◽  
Export Performance ◽  
Descriptive Analysis ◽  
Correction Model ◽  
Administration System ◽  
Long Run ◽  
Short Run ◽  
Available Information ◽  
Increasing Trends ◽  
The Relationship

Ekspor merupakan salah satu faktor terjadinya peningkatan pertumbuhan ekonomi suatu negara, sejalan dengan hipotesis export-led growth (ELG). Penelitian ini menganalisis perkembangan ekspor dan pertumbuhan ekonomi Indonesia periode kuartal I 2001 sampai dengan kuartal IV 2015. Penelitian ini menggunakan analisis deskriptif dalam menggambarkan perkembangan pertumbuhan ekonomi serta ekspor dan analisis kuantitatif metode Error Correction Model (ECM) dalam menganalisis efek jangka panjang dan jangka pendek dari ekspor terhadap pertumbuhan ekonomi. Pada periode penelitian, data yang ada menunjukkan bahwa ekspor dan pertumbuhan ekonomi Indonesia sama-sama mengalami peningkatan. Hasil regresi ECM menunjukkan bahwa ekspor memiliki pengaruh yang positif dan signifikan secara statistik terhadap pertumbuhan ekonomi Indonesia, yang mendukung hipotesis bahwa ELG berlaku untuk Indonesia. Berdasarkan hasil penelitian ini, maka untuk mendorong pertumbuhan ekonomi Indonesia diperlukan peningkatan kinerja ekspor Indonesia. Peningkatan kinerja ekspor Indonesia dapat dilakukan dengan berbagai cara, salah satunya adalah dengan perbaikan sistem administrasi ekspor, peningkatan riset dan pengembangan produk Indonesia, peningkatan sarana dan prasarana infrastruktur, stabilitas nilai tukar dan perluasan pasar non tradisional, termasuk perbaikan struktur ekspor komoditas. Export is one of the factors behind the economic growth which is in line with the export-led growth hypotesis (ELG). This research analyzes the relationship between economic growth and export of Indonesia during first quarter of 2001 until fourth quarter of 2015. It employs descriptive analysis to describe export movement and economic growth during the study period and ECM model to analyze the long run and the short run effects of export on the economic growth. The available information indicated that, during the study period, both export and economic growth showed similar increasing trends. The result of the ECM model revealed that export had a positive and statistically significant relationship with the economic growth, supporting the hypotesis of ELG in Indonesia. Hence, to accelerate economic growth, efforts are required to boost the export performance in Indonesia. The Export performance can be increased by several way, such as improving the export administration system, increasing the research and development of Indonesian products, improving the facilities and infrastructure, exchange rate stability and the non-tradisional markets expansion, and including improvement of the export commodity structure.

scholarly journals Economic Growth and Income Inequality in Developing Countries

2015 ◽  
Vol 9 (6) ◽  
pp. 79-82 ◽  
Author(s):  
Morteza Nemati ◽  
Ghasem Raisi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Income Distribution ◽  
Economic System ◽  
Development Strategy ◽  
Low Income ◽  
Poverty Eradication ◽  
The Relationship ◽  
Selection Of

Nowadays, improvement in income distribution and poverty eradication and hence low inequality are served as the main objectives of economic and social development strategy even prior than primary tasks of governments. to manifest importance of income distribution, some economists adopt income inequality and income distribution in society as criteria for economic system of the community, although these criteria and measures are theoretical for the economic system and this varies from the perspective of different people, however, it denotes on  importance of income distribution among individuals. The main objective of this study was to evaluate the effect of economic growth on income inequality in the selection of low-income developing countries.To this end, using panel data and data for 28 developing countries over the period 1990-2010 the relationship between GDP and the Gini coefficient was examined. The results indicate that as per hypothesis Kuznets in the early stages of growth, income inequality increases and then it declines in later stage.

ANALISIS HUBUNGAN ANTARA PERTUMBUHAN PENDUDUK DAN EKONOMI KASUS EKONOMI DI ASEAN-5, 1980-2013.

2016 ◽  
Vol 26 (1) ◽  
pp. 1
Author(s):  
Abdulrahman Taresh Abdullah A.
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Population Growth ◽  
Economies Of Scale ◽  
Annual Data ◽  
Labor Costs ◽  
Goods And Services ◽  
Vector Error ◽  
The Relationship ◽  
Quantity Of Children

This study empirically examines the causal relationship between population growth and economic growth, aswell as to analyze the influence of capital, labor, population growth and human resources on economic growth,using the annual data of ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore and Thailand), over theperiod of 1980-2013. The method used in this study is the Granger Causality and Vector Error CorrectionModel (VECM). VECM is used because the data is stationary at first difference and there is cointegrationbetween variables.From the results estimation which is conducted, it is concluded that, overall, the relationship betweenpopulation growth and economic growth in ASEAN-5 is strong and negative flow from economic growth topopulation growth. This study supports the opinion of theoretical and empirical claims; as income increases,households value quality over quantity of children. Concurrently, population can be a stimulus for economicgrowth through the realization of favorable economies of scale induced by low labor costs, enhancingaggregate demand for goods and services and promoting human capital, and improved efficiency.

Health investments and economic growth: a quantile regression approach

2018 ◽  
Vol 17 (2) ◽  
pp. 220-245 ◽  
Author(s):  
Francisca Rosendo Silva ◽  
Marta Simões ◽  
João Sousa Andrade
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Quantile Regression ◽  
Output Growth ◽  
Policy Implications ◽  
Infant Mortality Rate ◽  
Childhood Development ◽  
Lower Growth ◽  
Content Type ◽  
The Relationship

Purpose This study aims to analyse the relationship between health human capital and economic growth for a maximum sample of 92 countries over the period 1980-2010 taking into account countries’ heterogeneity by assessing how health variables affect different countries according to their position on the conditional growth distribution. Design/methodology/approach The paper estimates a growth regression applying the methodology proposed by Canay (2011) for regression by quantiles (Koenker, 1978, 2004, 2012a, 2012b) in a panel framework. Quantile regression analysis allows us to identify the growth determinants that present a non-linear relationship with growth and determine the policy implications specifically for underperforming versus over achieving countries in terms of output growth. Findings The authors’ findings indicate that better health is positively and robustly related to growth at all quantiles, but the quantitative importance of the respective coefficients differs across quantiles, in some cases, with the sign of the relationship greater for countries that recorded lower growth rates. These results apply to both positive (life expectancy) and negative (infant mortality rate, undernourishment) health status indicators. Practical implications Given the predominantly public nature of health funding, cuts in health expenditure should be carefully balanced even in times of public finances sustainability problems, particularly when growth slowdowns, as a decrease in the stock of health human capital could be particularly harmful for growth in under achievers. Additionally, the most effective interventions seem to be those affecting early childhood development that should receive from policymakers the necessary attention and resources. Originality/value This study contributes to the existing literature by answering the question of whether the growth effects of health human capital can differ in sign and/or magnitude depending on a country’s growth performance. The findings may help policymakers to design the most adequate growth promoting policies according to the behaviour of output growth.

Export promotion programmes and export performance

2017 ◽  
Vol 27 (4) ◽  
pp. 466-483 ◽  
Author(s):  
Daniel M. Quaye ◽  
Kwame Ntim Sekyere ◽  
George Acheampong
Keyword(s):  
Financial Incentives ◽  
Export Performance ◽  
Export Promotion ◽  
Content Type ◽  
Emerging Trends ◽  
Promotional Strategy ◽  
Foreign Countries ◽  
Strong Positive Relationship ◽  
And Performance ◽  
The Relationship

Purpose Many nations now engage in economic promotion of their countries in foreign countries. One major aspect of this activity is export promotions. This paper aims to understand the relationship between export promotional activity participation and export performance by Ghanaian manufacturing firms. Design/methodology/approach The list of manufacturing exporters was obtained from the Ghana Export Promotion Authority, and the convenience and snowballing approach was used to reach and administer research instrument. The relationship between export promotion and performance was estimated using a multiple regression. Findings The results of this study indicate that exporters should implement specific export promotion programmes if they want to enhance export performance and become successful. The findings of this study show that the programmes that have a strong positive relationship with export performance are trade fairs, foreign offices and tax and financial incentives. Originality/value The results of this study contribute to the international entrepreneurship literature in several ways. First, findings from this study contribute to the limited literature on exports in developing countries such as Ghana. Again, the study framework provides assistance to assess and monitor emerging trends in export promotion strategies. Also, export promotion, as a whole, provides a framework in which firms formulate strategies, allocates resources and seeks opportunities in a coordinated way. Finally, in the international marketplace, firms need to maintain their competitive edge, and it is important to operate efficiently and effectively using an appropriate export promotional strategy.

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