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On the Causality between Export Growth and GDP Growth: An Empirical Reinvestigation
Author(s) -
Xu Zhenhui
Publication year - 1996
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.1996.tb00094.x
Subject(s) - economics , causality (physics) , causation , sample (material) , monetary economics , econometrics , macroeconomics , chemistry , physics , chromatography , quantum mechanics , political science , law
Although conventional wisdom suggests that export growth contributes positively to economic growth, empirical studies on the causal links between exports and output have provided little support for the exportled growth hypothesis. This paper reexamines the direction of causation by handling properly two important issues in causality tests: the characteristics of the data, and the choice of optimal lags. The results of this study show that in a sample of 32 economies, the export‐led hypothesis is supported by 17 economies and is strongly supported by 9 economies.