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A test for the export-led growth hypothesis in possibly integrated vector autoregressions

Tai-Hsin Huang and Mei-Hui Wang

Applied Economics Letters, 2007, vol. 14, issue 13, 999-1003

Abstract: This article re-examines the direction of causation between exports and output by testing for Granger noncausality under the framework of four-variable vector autoregression. Both the methodologies developed in Toda and Phillips (1993, 1994) and Toda and Yamamoto (1995) are applied. A country is recommended to enforce export promotion policies as its appropriate development strategy, if its manufacturing sector takes up a relatively large share.

Date: 2007
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DOI: 10.1080/13504850600706073

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