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Does Export Promotion Increase Economic Growth? Some Cross‐Section Evidence
Author(s) -
Subasat Turan
Publication year - 2002
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/1467-7679.00175
Subject(s) - promotion (chess) , economics , index (typography) , work (physics) , empirical evidence , core (optical fiber) , order (exchange) , export performance , international economics , empirical research , international trade , mechanical engineering , philosophy , materials science , epistemology , finance , politics , world wide web , political science , computer science , law , composite material , engineering
This article is concerned with the empirical link between exports and economic growth. Its core objectives are to attempt control for structural features that determine ‘export orientation’ in order to derive an index of export promotion that captures policy effects only, and then to test whether or not this index is a determinant of growth. The empirical work presented casts doubt on the overall validity of the export‐led development hypothesis. The analysis suggests that middle‐income countries that are more export‐oriented grow faster than relatively less export‐oriented economies. For low‐ and high‐income countries, however, export promotion does not have any significant impact on economic growth.