Export-led Growth in South Asia: A Panel Cointegration Analysis

Abstract

In this paper, we attempt to examine the export-led and manufacturing export-led growth hypothesis for four South Asian Countries; namely, India, Pakistan, Bangladesh and Sri Lanka, using Pedroni's panel cointegration technique for the period 1980-2002. In this context we estimate growth accounting equations to investigate the impact of exports, manufacturing exports and other important physical and human capital variables on both total GDP and non-export GDP. The study finds long-run equilibrium relationship between GDP (and non-export GDP) and exports along with other variables supporting export-led growth hypothesis. The results also substantiate the existence of manufacturing export-led growth hypothesis. Further, we find that export, fixed capital formation, public expenditure on health and education have statistically significant coefficients re-emphasizing the importance of these variables for higher economic growth.Exports, economic growth, South-Asia, panel cointegration,

The Relationship between Export and Growth: Panel Data Evidence from Turkish Sectors

“…Micro findings are consistent with Abu-Quarn and Abu-Bader (2004), Kurt and Terzi (2007), and Yaprakli (2007) who conclude that the export-led growth hypothesis is found to be valid in the manufacturing sector of Turkey. Moreover, in the manufacturing industry findings are consistent with Parida and Sahoo (2007), Ghatak et al (1997), Herzer et al (2006), Cuerasma and Wörz (2005), Cipamba (2012), Shakouri and Yazdi (2012), and Shafiullah et al (2017) in the case of countries other than Turkey. In the case of the fishery sector, findings of this study have results consistent with those by Duc and Tram (2011) in Vietnam.…”

“…In line with the theory which extended Neoclassical production function with foreign trade and empirical literature (see, for example : Feder 1982;Baldwin 1992;Ben-David and Loewy 2003;Gundlach 2007;Parida and Sahoo 2007;Awokuse 2008;Kristjanpoller and Olson 2014), economic growth (y) is defined as a function of physical capital (k), labour (l) and exports (x):…”

The Exports and Economic Growth Nexus in Cote D ivoire: Evidence from a Multivariate Time Series Analysis

“…Recognizing the omitted variable bias, the author suggested a closer look at other important variables that may explain economic growth in Malaysia. Mahadevan (2007) used the Toda and Yamamoto (1995) causality test and found evidence of two-way causality between exports and trade-adjusted GDP in Malaysia for the period 1974-2003. Parida and Sahoo (2007 examined the impact of exports on both total GDP and non-export GDP on four South Asian countries, namely, India, Pakistan, Bangladesh and Sri Lanka.…”

Revisiting the Exports and Economic Growth Nexus: Rolling Window Cointegration and Causality Evidence from Cote d’Ivoire, Malaysia, Pakistan and South Africa

“…Reppas and Christopoulos (2005) also found evidence supporting the growth-led export and not the export-led growth hypothesis for Cote d'Ivoire, Gabon, South Africa, Malaysia, and Pakistan. In the case of Pakistan, Love and Chandra (2004); Shirazi and Manap (2005); Parida and Sahoo (2007) and Shahbaz et al (2011) confirmed the export-led growth hypothesis, while Bahmani-Oskooee (1993); Khan and Saqib (1993) and Saleem and Sial (2015) found bidirectional causal relationship between exports and output, and Dodaro (1993), Afzal and Hussain (2010) and Kumari and Malhotra (2015) found no causal relationship between exports and economic growth. For Malaysia, Islam (1998) did not find any causal relationship between exports and economic growth, while Al-Yousif (1999); Ekanayake (1999) and Choong et al (2005) provided evidence confirming the export-led growth hypothesis, and Hassan and Murtala (2016) found evidence validating the growth-led export hypothesis.…”