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Export-led growth hypothesis : new evidence from Thirlwall's idea

Author

Listed:
  • Chee-Keong Choong

    (Department of Economics, Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Malaysia)

  • Zulkornain Yusop
  • Siong-Hook Law

    (Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia)

Abstract

This study reexamines the relationship between exports and economic growth in ten East Asian and Pacific economies by building upon Verdoorn's [1941] idea. The cointegration tests indicate the existence of long-run and stable relationships between economic growth, exports, imports, capital, and labor in each economy. Granger-causality tests indicate short-run in causality (either export-led growth or growth-driven exports) in most economies. Besides, among the long-run estimated coefficients between exports and imports, Fiji, Hong Kong, Japan, Malaysia, and the Philippines satisfy the intertemporal budget constraint—that is, these economies have an effective international trade policy to balance their trade position. The findings are in line with traditional trade theories and some recently developed endogenous growth theories.

Suggested Citation

  • Chee-Keong Choong & Zulkornain Yusop & Siong-Hook Law, 2007. "Export-led growth hypothesis : new evidence from Thirlwall's idea," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 44(1), pages 125-150, June.
    • Handle: RePEc:phs:prejrn:v:44:y:2007:i:1:p:125-150
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/221/636
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    Cited by:

    1. Tang, Chor Foon & Abosedra, Salah, 2019. "Logistics performance, exports, and growth: Evidence from Asian economies," Research in Transportation Economics, Elsevier, vol. 78(C).

    More about this item

    Keywords

    exports; growth; cointegration; causality;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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