Export-Led Growth in Chile: Assessing the Role of Export Composition in Productivity Growth

Abstract

This study examines the export-led growth hypothesis using annual time-series data from Chile in a production function framework. It addresses the limitations of the existing literature and focuses on the impact of manufactured and primary exports on productivity growth. In order to investigate if and how manufactured and primary exports affect economic growth via increases in productivity, several single-equation and system cointegration techniques are applied. The estimation results can be interpreted as evidence of productivity-enhancing effects of manufactured exports and of productivitylimiting effects of primary exports.

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

“…These findings are consistent with previous studies, which argued that manufactured exports offer knowledge spillover effects and other externalities, enhancing economic growth (e.g. Fosu 1990;Abu-Qarn and Abu-Bader 2004;Herzer et al 2006;Siliverstovs and Herzer 2006). The short-run causality analysis based on disaggregated exports confirms the existence of bidirectional causality between manufactured exports and economic growth, which is consistent with previous studies (e.g.…”

“…Moreover, previous studies investigate the impact of export composition on economic growth, indicating that not all exports contribute equally to economic growth (Fosu 1990;Herzer et al 2006;Siliverstovs and Herzer 2006;Hosseini and Tang 2014). The reliance of economies on exports of primary products can slow down economic growth, while the expansion of manufactured exports can have a positive and significant effect on economic growth.…”

A Reassessment of Tourism-Exports Led Growth Hypothesis in Africa

“…Therefore, we adopt Herzer, et al (2004) neoclassical Cobb-Douglas production function with some modifications, in terms of inclusion of some vital variables;…”

Conditioned Export-Led Growth Hypothesis: A Panel Threshold Regressions Approach

“…We add three other groups of studies to this classification. First, some recent studies have emerged concerning the importance of the composition of exports, as Fosu (1990), Funke and Ruhwedel (2001), Crespo-Cuaresma and Wörz (2005), and Herzer et al (2006), between others. Second, another group of studies have applied recent techniques of causality for panel data, as Ahumada and Sanguinetti (1995), and Kónya (2006).…”