Export diversification and total factor productivity growth in case of South Asian region

Badri Rath and Vaseem Akram

Journal of Social and Economic Development, 2017, vol. 19, issue 1, No 11, 196-210

Abstract: Abstract While several studies examine the relationship between export diversification and economic growth, little is known about the relationship between export diversification and TFP growth. This paper makes an attempt to fill this research gap by considering South Asian region. We examine this relationship by looking at the long-run as well as the short-run relationship between TFP growth and export diversification by using annual data from 1995 to 2014. The empirical results derived from the panel cointegration technique provide evidence of long-run relationship between TFP growth and export diversification. The results based on DOLS confirm that export diversification positively affects the TFP growth in South Asian region; however, this evidence is weak when we analyzed each country separately. Finally, our results indicate that export diversification Granger cause TFP growth in the long-run, whereas no causality found in short-run. Our findings suggest that export diversification is crucial to avoid the volatility of export growth and for enchantment of productivity growth in South Asian region.

Keywords: Export diversification; TFP growth; Panel cointegration; DOLS; Panel causality; South Asia (search for similar items in EconPapers)
JEL-codes: C23 F14 O47 O57 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1007/s40847-017-0037-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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: https://EconPapers.repec.org/RePEc:spr:jsecdv:v:19:y:2017:i:1:d:10.1007_s40847-017-0037-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40847

DOI: 10.1007/s40847-017-0037-z

Access Statistics for this article

Journal of Social and Economic Development is currently edited by M.G. Chandrakanth, D. Rajasekhar, Anand Inbanathan and S. Madheswaran

More articles in Journal of Social and Economic Development from Springer, Institute for Social and Economic Change
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().