Impact of Exports and Imports on Economic Growth in Canada: Empirical Analysis Based on Causality

Sayef Bakari

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the relationship between exports, imports, and economic growth in Canada. In order to achieve this purpose, annual data for the periods between 1990 and 2015 was tested by using Johansen co-integration analysis of Vector Auto Regression Model and the Granger-Causality tests. According to the result of the analysis, it was determined that there is no relationship between exports, imports and economic growth in Canada. On the other hand, we found that there is a strong evidence of bidirectional causality from imports to economic growth and from exports to economic growth. These results provide evidence that exports and imports, thus, are seen as the source of economic growth in Canada.

Keywords: Export; Import; Economic Growth; Canada; Cointegration; VAR and Causality. (search for similar items in EconPapers)
JEL-codes: F1 F10 F14 (search for similar items in EconPapers)
Date: 2016-12-02
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 (16)

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