A further examination of the export-led growth hypothesis

Dierk Herzer

No 200, Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research

Abstract: This paper challenges the common view that exports generally contribute more to GDP growth than a mere change in export volume, as the export-led growth hypothesis predicts. Applying heterogeneous panel cointegration techniques to a production function model with non-export GDP as the dependent variable, we find for a sample of 45 developing countries that: (i) exports have a positive short-run effect on non-export GDP in developing countries, (ii) the long-run effect of exports on non-export output, however, is negative on average, and (iii) there are large differences in the long-run effect of exports on non-export GDP across countries. Evidence from a simple regression analysis suggests that these cross-country differences in the long-run effect of exports on non-export GDP are significantly negatively related to cross-country differences in primary export dependence, business regulation, and labour regulation, whereas there is no statistically significant association between the growth effect of exports and the capacity of a country to absorb knowledge.

Keywords: Export-led growth; Developing countries; Panel cointegration (search for similar items in EconPapers)
JEL-codes: C23 F43 O11 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-02-16
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www2.vwl.wiso.uni-goettingen.de/ibero/working_paper_neu/DB200.pdf (application/pdf)

Related works:
Journal Article: A further examination of the export-led growth hypothesis (2013)
Working Paper: A Further Examination of the Export-Led Growth Hypothesis (2011)
Working Paper: A further examination of the export-led growth hypothesis (2011)
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:got:iaidps:200

Access Statistics for this paper

More papers in Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Jaep ().