Economics at your fingertips  

Export-Led Growth Hypothesis in ECOWAS: A Panel Data Analysis

Genesis B. Kollie

African Journal of Economic Review, 2020, vol. 08, issue 2

Abstract: The export led-growth hypothesis is one of the widely researched areas in the field of international economics. However, there is an ongoing debate as to whether it is export that causes economic growth or vice versa; with past and current research showing mixed findings. This paper retested the export-led growth hypothesis using panel data for ten selected ECOWAS member countries from 2000 to 2017. We used panel autoregressive distributed lags/pooled mean group (ARDL/PMG) approach as well as the panel causality test to determine the directional relationships of the macroeconomic variables used. We further disaggregated export into three (merchandise export, services export and total export) and controlled for other growth-relevant variables. From the panel ARDL/PMG estimation, we found that merchandise export positively influences economic growth in both the short and long runs; while services export and total export positively impact economic growth only in the long run. Using the pairwise granger causality test, we found a long run causal relationship flowing from services and total exports to economic growth respectively. However, we also found a bidirectional relationship between merchandise export and economic growth. Given the findings, this study found support for the export-led growth hypothesis in ECOWAS. Policy wise, efforts to improve the region’s economy should be channeled through export promotion strategies.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.22004/ag.econ.304725

Access Statistics for this article

More articles in African Journal of Economic Review from African Journal of Economic Review
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2021-01-16
Handle: RePEc:ags:afjecr:304725