The Trade–Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004

Salem Abo Zaid
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Salem Abo Zaid: Bank of Israel
Authors registered in the RePEc Author Service: Salem M. Abo-Zaid

No 2006.11, Bank of Israel Working Papers from Bank of Israel

Abstract: The topic of trade effects on economic growth has been usually controversial. Former empirical evidence linking trade to growth in Israel has been mixed and inconclusive either. This study reexamines the role of trade in Israel by testing for cointegration and causality from both exports and imports to output and total factor productivity over 1960-2004. The results suggest that both output and TFP are positively long-run correlated with exports and imports. The Granger causality tests indicate positive effects of exports on both output and TFP, where imports influence output only. In addition, physical capital has also been found to be Granger-caused by imports. However, it is uncertain whether this finding reflects a true economic causality.

Pages: 58 pages
Date: 2006-12
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https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2006.11.pdf First version, 2006 (application/pdf)

Related works:
Journal Article: The Trade-Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004 (2011)
Working Paper: The Trade–Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004 (2010)
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