Further evidence on the Export-Led Growth Hypothesis

Epaminondas Panas and George Vamvoukas

Applied Economics Letters, 2002, vol. 9, issue 11, 731-735

Abstract: The Export-Led Growth Hypothesis (ELGH) is an interesting subject of research in the field of applied economics. This paper investigates the causal links between exports and output growth in the empirical framework of the Greek economy, using error-correction modelling and multivariate Granger causality. A sensitivity analysis based on impulse responses is implemented to check the robustness of the results. The estimation procedure generates robust results, indicating that the ELGH is not valid in the case of Greece. Furthermore, the empirical findings suggest a strong and consistent causation from output growth to export performance in the long-run.

Date: 2002
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DOI: 10.1080/13504850210126840

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