Economics at your fingertips  

Export- Led Growth Hypothesis for Ghana: A TVAR & TVECM Analysis

Shuffield Asafo

The Economics and Finance Letters, 2020, vol. 7, issue 2, 92-103

Abstract: This study employs threshold models to examine the export-led growth hypothesis (ELG) for Ghana from 1970-2018. The analysis commences as follows. Firstly, using real GDP as threshold variable, the study conducts a non-linearity test for the threshold vector autoregressive (TVAR) model as against the linear vector autoregressive (VAR) model. Secondly, the study evaluates whether the ELG hypothesis is best explained with linear co-integration models or threshold co-integration models. The empirical results indicate that, the ELG hypothesis is supported by the two-threshold vector autoregressive model (threshold values of 2.35 and 2.46) and a two-threshold vector error correction model (threshold values -0.50 and -0.20). The error correction term of the TVECM is negative and statistically different from zero, signifying speed of long run convergence. In terms of threshold co-integration, real GDP versus real exports and real GDP vs real imports are threshold co-integrated. In contrast, the null hypothesis of linear co-integration is not rejected for real export versus real import.

Keywords: Macroeconomic data; Exports; Non-linear time series models Ghana; Unit root test; Co-integration. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

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: 10.18488/journal.29.2020.72.92.103

Access Statistics for this article

The Economics and Finance Letters is currently edited by Sanele Phillip (Editorial Office)

More articles in The Economics and Finance Letters from Conscientia Beam 2637 E Atlantic Blvd #43110 Pompano Beach, FL 33062, USA.
Bibliographic data for series maintained by Editorial Office ().

Page updated 2021-04-20
Handle: RePEc:pkp:teafle:2020:p:92-103