The Growth Impact of Exports in South Asian Countries

Abid Hameed, Muhammad Ali Chaudhary and Kiran Younas Khan
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Abid Hameed: Fatima Jinnah Women's University, Rawalpindi.
Muhammad Ali Chaudhary: Fatima Jinnah Women's University, Rawalpindi.
Kiran Younas Khan: IMF, Washington, D. C.

The Pakistan Development Review, 2005, vol. 44, issue 4, 901-919fu0-

Abstract: This study investigates the impact of exports on the economic growth of the South Asian countries. Specifically, it examines if the marginal factor productivities are different in the export and nonexport sectors, and whether the export sectors of these economies generate positive production externalities. The required analysis is based on panel data on six South Asian countries for the period 1973-2002. Following Feder (1982), we have used the fixed effects approach for necessary estimations. The results show that the level and reallocation of resources particularly in favour of the relatively more efficient export sector affect growth positively. However, externalities arising from the export sector of these countries are not found as growth-enhancing due partly to their reliance on the production of lowtech labour-intensive products. As such, the results point out that these countries can accelerate their

Date: 2005
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