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

Salem Abo-Zaid

MPRA Paper from University Library of Munich, Germany

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 the period 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. This may suggest that the impact of imports on output is through the accumulation of physical capital and/or improvement in TFP over time.

Keywords: Trade-growth relationships; Cointegration; Causality; Israeli economy (search for similar items in EconPapers)
JEL-codes: C22 F43 O47 (search for similar items in EconPapers)
Date: 2010-10-31
New Economics Papers: this item is included in nep-cwa, nep-fdg and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/26344/2/MPRA_paper_26344.pdf original version (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 (2006)
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:pra:mprapa:26344

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().