The relationship between exports and economic growth has been examined extensively in recent years for a variety of countries. These studies suffer from two shortcomings. First, using cross-country data these studies assume similar technology across the countries. Second, ignoring simultaneity between exports and economic growth their parameter estimates are biased and inconsistent. This paper examines the relationship between these two variables in a simultaneous equation framework and uses 3SLS technique. Not only a strong positive association between exports performance and economic growth is found but more than 90 per cent of the contribution of exports to economic growth is indirect in nature. [F 14]
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Volume (Year): 7 (1993) Issue (Month): 3 (October) Pages: 53-63 Download reference. The following formats are available: HTML
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