Some Evidence on the Export-Led Growth Hypothesis for Ireland

Stilianos Fountas

No 8, Working Papers from National University of Ireland Galway, Department of Economics

Abstract: The objective of this paper is to test for the export-led growth hypothesis in Ireland over the last 40 years using the modern econometric analysis of non-stationary time series. We find that over the 1950--1990 period there is no long-run relationship between real GDP and export volume and no evidence for the export-led growth hypothesis either. The analysis of the more recent 1981--1994 period provides strong evidence in favour of a long-run relationship between industrial production and export volume and Granger-causality from exports to output. These results support the export-led growth hypothesis over the last fifteen years and highlight the importance of export-promoting policies.

JEL-codes: F1 (search for similar items in EconPapers)
Pages: 11
Date: 1995, Revised 1995
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Published in Applied Economics Letters, Vol. 7, No. 4, pp. 211-214, 2000

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