Exports, Imports and Income in Taiwan: An Examination of the Export Led Growth Hypothesis

Chang, Tsangyao; Fang, Wen; Liu, W.; Thompson, Henry

doi:10.1080/10168730000000023

Cited by 8 publications

(4 citation statements)

References 13 publications

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“…Lee & Huang (2002) find that the relationship whereby exports lead output prevails in at least one regime for each of four of the countries of South Asia, namely-Japan, Korea, Philippines, and Taiwan except Hong Kong. In contrast to the above findings studies like Chang et al (2000), Mishra (2011) and reject the ELG hypothesis.…”

Section: Literature Reviewcontrasting

confidence: 90%

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

Bal¹,

Mamun²,

Basher³

et al. 2019

Ömer Halisdemir Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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The meticulous growth of both export and output of Bangladesh following the inception of trade liberalization and export promotion in the late 1970s through 2010s gravely underscore the export-led growth (ELG) hypothesis for the economy. The present study examines both the short-run causality and long-run dynamics between export and economic growth in order to confirm whether the ELG hypothesis works for Bangladesh drawing data for the period from 1974 to 2015. The long-run dynamics between export and output growth based on ARDL Bounds testing approach suggests that ELG is evident for Bangladesh. In order to examine the short-run causality, the study performs Toda-Yamamoto causality test along with the conventional Granger causality test. While the Granger causality analysis identifies a bidirectional causal relationship between exports and output growth, the Toda-Yamamoto approach confirms a unidirectional causality that runs from exports to output growth. A unidirectional causal relationship from export to output growth is necessary for the validity of the ELG hypothesis. However, bidirectional causality between export and output implies that growth in exports reinvigorates output growth which, in turn, reinforces export expansion and thereby further underlines the validity of the ELG hypothesis.

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Section: Literature Reviewcontrasting

confidence: 90%

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

Bal¹,

Mamun²,

Basher³

et al. 2019

Ömer Halisdemir Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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“…Taiwan is a small open economy, with export revenue averaging 45% of GDP over this period. Darrat et al (2000) credit the rapid growth of Taiwan to export promotion, but Chang et al (2000) raise questions about this conclusion. The Asian financial crisis of 1997 caused dramatic depreciation and exchange rate volatility, and the flattening of export growth suggests a negative impact for exchange risk.…”

Section: mentioning

confidence: 99%

Exchange Rate Risk and Export Revenue in Taiwan

Fang

Thompson

2004

Pacific Economic Review

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The effect of exchange rate risk on export revenue in Taiwan between 1979 and 2001 is investigated in a bivariate GARCH-M model that simultaneously estimates time-varying risk. Depreciation is found to stimulate export revenue in domestic currency, but the quantitative impact is small and any associated increase in exchange risk has a negative impact. Implications for economic policy are discussed.

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“…Export diversification was not found to be a source of economic growth. Similarly, no support was found for this hypothesis during the period of rapid growth in Chinese Taipei in the study carried out by Chang et al (2000). Finally, Sharma and Panagiotidis (2005) tested the export-led growth hypothesis in the case of India using diverse approaches and their findings tended to reinforce the arguments against the export-led growth hypothesis.…”

Section: Export Diversification and Economic Growthmentioning

confidence: 89%