Causality between exports and economic growth: empirical estimates for slovenia

Jani Bekő

Prague Economic Papers, 2003, vol. 2003, issue 2, 169-186

Abstract: This paper employs error-correction representation approach and conditional causality technique to assess the patterns of export-economic growth link in Slovenia. In general, the results support the existence of bi-directional causality between export variables and indicators of domestic economic activity. The evidenced bi-directional causality of exportoutput relation for Slovenia suggests that any characterization of a small country's growth as export-driven may be at least perfunctory. As the results imply, there are no trade-offs between whether to pursue a growth strategy of structural reforms for internal competitiveness with the goal of higher domestic growth and afterwards an increasing exports, or to apply trade policy for improving the international competitiveness and enabling the economy a quick response to foreign demand.

Keywords: exports; economic growth and causality (search for similar items in EconPapers)
JEL-codes: C40 F43 (search for similar items in EconPapers)
Date: 2003
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DOI: 10.18267/j.pep.213

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