Examining the Export-led Growth Hypothesis: The case of Croatia

Bilas, Vlatka; Bošnjak, Mile; Franc, Sanja

doi:10.1515/ngoe-2015-0010

Cited by 10 publications

(5 citation statements)

References 36 publications

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“…The first group includes studies, whose findings are consistent with a unidirectional causal flow from exports to economic growth. These studies include, amongst other, studies such as Boame (1998) for the case of Ghana; El-Sakka and Al-Mutairi (2000) for Iraq, Morocco, Saudi Arabia and Syria; Fountas (2000) for Ireland; Awokuse (2003) for Canada; Shirazi and Manap (2005) for Pakistan; Siliverstovs and Herzer (2006) for Chile; Jordaan and Eita (2007) for Namibia; Narayan et al (2007) for the case of Papua New Guinea in the short run and Fiji in the long run; Dash (2009) for India; Rangasamy (2009) for South Africa; Uddin et al (2010) for Bhutan; Ramona et al (2010) for Romania; Samad (2011) for Algeria; Saad (2012) for Lebanon; Tsaurai and Odhiambo (2012) for Zimbabwe; Dritsaki (2013) for Greece; Abdulkarim (2014) for Saudi Arabia; Bilas et al (2015) for Croatia; Ee (2016) for the case of selected sub-Saharan African (SSA) countries; Ali and Li (2018) for China and Pakistan; Ahmad et al (2018) for ASEAN5 economies; Dinç and Gökmen (2019) for the case of Brazil in the short run; Kalaitzi and Chamberlain (2020) for the case of the United Arab Emirates in the short run; Kim et al (2019) for Myanmar; Shakeel and Ahmed (2020) for a panel of five South Asian countries in the long run.…”

Section: Literature Reviewmentioning

confidence: 99%

Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis

Odhiambo

2021

EJMBE

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PurposeThis study examines the causal relationship between exports and economic growth in sub-Saharan African (SSA) countries during the period 1980 to 2017. The study also examines whether the causality between these two macroeconomic variables depends on the countries' stage of development as proxied by their per capita income.Design/methodology/approachThe study uses a panel cointegration test and panel Granger-causality model to examine the link between exports and growth. The study also incorporates external debt as an intermittent variable in a bivariate setting between exports and economic growth, thereby creating a dynamic multivariate panel Granger-causality model.FindingsAlthough the study found the existence of a long-run relationship between exports and economic growth, the study failed to find any export-led growth response in both low-income and middle-income countries. Instead, the study found evidence of a bidirectional causality and a neutrality response in middle-income and low-income countries, respectively. The study, therefore, concludes that the benefits of an export-led growth hypothesis may have been oversold, and that the strategy may not be desirable to some low-income developing countries.Practical implicationsThese findings have important policy implications as they indicate that the causality between exports and economic growth in SSA countries varies with the countries' stage of development. Consistent with the contemporary literature, the study cautions low-income SSA countries against over-relying on an export-led growth strategy to achieve a sustained growth path as no causality between exports and economic growth has been found to exist in those countries. Instead, such countries should consider pursuing new growth strategies by building the domestic demand side of their economies alongside their export promotion strategies in order to expand the real sector of their economies. For middle-income countries, the study recommends that both export promotion strategies and pro-growth policies should be intensified as economic growth and exports have been found to reinforce each other in those countries.Originality/valueUnlike the previous studies, the current study disaggregated the full sample of SSA countries into two subsets – one comprising of low-income countries and the other consisting of middle-income countries. In addition, the study uses a multivariate Granger-causality model in order to address the emission-of-variable bias. To our knowledge, this may be the first study of its kind in recent years to examine in detail the causal relationship between exports and economic growth in SSA countries using an ECM-based multivariate panel Granger-causality model.

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Section: Literature Reviewmentioning

confidence: 99%

Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis

Odhiambo

2021

EJMBE

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“…According to application results, there is one-way causality from real export to real GDP. Bilas, Bosnjak and Franc (2015) tested the relationship between GDP and export with Granger causality test for Croatia. Test results showed that during the period 1996-2012, ELG strategy is accepted.…”

Section: Empirical Literaturementioning

confidence: 99%

A Comparison of Domestic Demand and Export-led Growth Strategies for European Transition Economies

Sağlam

Egeli

2018

Foreign Trade Review

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The relationship between growth and trade has been argued many times in the literature. The topic is still current, dealing with different methodologies and countries by researchers. In this frame to understand the relationship theoretically and empirically better, the topic is examined again with a different approach which is explaining export-led growth (ELG) and domestic-demand-led growth (DLG) strategies comparatively for European transition economies. The annual data for the period between 1990 and 2015 were taken from Data Stream for 16 European (Central and Eastern Europe, Southeastern Europe and Balkans) transition economies and because data include both cross section and time dimension, it is necessary to apply dynamic panel data techniques. Second-generation unit root test (multifactor), Westerlund ECM panel co-integration test and heterogeneous panel causality test are applied, and long-term coefficients are estimated with common correlated effects (CCE) model. According to test results, not only ELG but also DLG strategy is accepted for European transition economies, and the direction of the relationship between growth and trade is bilateral. But the contribution of domestic demand on growth is seven times bigger than net export. The leading countries for ELG strategy are Romania, Bosnia and Herzegovina but for Poland and Czech Republic DLG strategy contributes more on economic growth. It is a better macroeconomic policy to have the balance between export-led and domestic-demand-led growth strategies for a sustainable economic growth. The key approach of high growth rate is to produce high technology with competitive price according to domestic demand and export it to the foreigner markets. JEL Codes: F14, C01, C33

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“…We concentrated on the following industries: agriculture, forestry and fishing, mining and quarrying, manufacturing, and information and communication. The intention was to exclude services, especially tourism and transportation that significantly impact Croatian exports, according to the suggestion of separating exports of goods and services in the study by Bilas, Bošnjak, and Franc (2015). The Bisnode database has identified 25,423 companies from those industries that are involved in export activities, which makes up about 8% of all registered companies.…”

Section: Methodsmentioning

confidence: 99%

Untitled

2019

JEMI

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The JOURNAL OF ENTREPRENEURSHIP, MANAGEMENT AND INNOVATION is an interdisciplinary, double blind-reviewed journal, emphasizing theoretical and empirical articles in entrepreneurship, management, innovation and related fields. The journal is published both in printed form and on-line at www.jemi.edu.pl. THE ENTREPRENEURSHIP AREA OF THE JOURNAL The entrepreneurship area of the journal covers the three major topics: 1) venture creation and small business, 2) the impact of entrepreneurship on economic growth including local and regional development, and 3) entrepreneurial attitudes and motives. We invite original papers of theoretical and empirical nature, rooted in the disciplines of economics, management, sociology, political science, and psychology. The interdisciplinary research is encouraged to assure a comprehensive approach to the topics discussed and to advance both theory and practice. THE MANAGEMENT AREA OF THE JOURNAL Management, as a thematic scope of the journal, focuses on theoretical and empirical considerations of various areas, such as: strategic management, operation or production management, human resource management, information and management, contemporary management problems, new methods and management tools, new forms of organization and management, new threats in management, or new challenges in the organization's environment. THE INNOVATION AREA OF THE JOURNAL The innovation area of the Journal's focus will emphasize a broad range of topics and approaches, including (but not limited to): 1) role of private and public sector in development and diffusion of innovations, 2) product, process and business model innovations, 3) profiles of innovative products, structures and processes, aimed at improving management practice and providing inspiration for entrepreneurs, 4) comparative analyses of national, regional policy or sector issues, such as R&D trends, patents, citations etc., 5) theoretical work on economic, organizational and scientific aspects of innovation, encouraging the search for inspirations from various disciplines, including natural sciences, arts and humanities. THE ENTREPRENEURIAL FINANCE AREA OF THE JOURNAL The entrepreneur or entrepreneurial firm, the institutions providing finance to the entrepreneurs, and the different types of financial sources used by the entrepreneurial firms or investors. Among the areas of our special interests might be enumerated: accounting and corporate finance, financial market as a background for SME development, entrepreneurial finance, regulatory and supervisory aspects related to corporate finance.

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Examining the Export-led Growth Hypothesis: The case of Croatia

Cited by 10 publications

References 36 publications

Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis

Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis

A Comparison of Domestic Demand and Export-led Growth Strategies for European Transition Economies

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