IDEAS home Printed from https://ideas.repec.org/a/ags/afjecr/264378.html
   My bibliography  Save this article

Export-Led Growth Hypothesis: Evidence from Agricultural Exports in Tanzania

Author

Listed:
  • Myovella, Godwin A.
  • Paul, Fintan
  • Rwakalaza, Rameck T.

Abstract

This study examines the nature and direction of causality in Tanzania between economic growth and agricultural exports along with some selected variables such as labour force and domestic investment. The analysis for this study was carried out using time series data for the period of 1980 to 2013. The data series were tested for stationarity using Phillips-perron test and the results revealed that they were all stationary and integrated of order one I(1). The Johansen test of cointegration revealed that there are cointegrating vectors in the system. The Granger causality test results revealed no any support of the export-led growth (ELG) hypothesis for Tanzania. However, the growth-led exports (GLE) hypothesis for Tanzania was supported by the results of this study, implying that the government of Tanzania needs to promote growth in order to generate exports.

Suggested Citation

  • Myovella, Godwin A. & Paul, Fintan & Rwakalaza, Rameck T., 2015. "Export-Led Growth Hypothesis: Evidence from Agricultural Exports in Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 3(2), July.
  • Handle: RePEc:ags:afjecr:264378
    DOI: 10.22004/ag.econ.264378
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264378/files/119481-329675-1-SM.pdf
    Download Restriction: no

    File URL: https://ageconsearch.umn.edu/record/264378/files/119481-329675-1-SM.pdf?subformat=pdfa
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.264378?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Judith Giles & Cara Williams, 2001. "Export-led growth: a survey of the empirical literature and some non-causality results. Part 2," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 9(4), pages 445-470.
    2. Narayan, Paresh Kumar & Smyth, Russell, 2008. "Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks," Energy Economics, Elsevier, vol. 30(5), pages 2331-2341, September.
    3. Christian Dreger & Dierk Herzer, 2013. "A further examination of the export-led growth hypothesis," Empirical Economics, Springer, vol. 45(1), pages 39-60, August.
    4. Acaravci, Ali & Ozturk, Ilhan, 2012. "Foreign Direct Investment, Export and Economic Growth: Empirical Evidence from New EU Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 52-67, June.
    5. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
    6. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
    7. Shombe, Nicolaus Herman, 2008. "Causality Relationships between Total Exports with Agricultural and Manufacturing GDP in Tanzania," IDE Discussion Papers 136, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Odhiambo, Nicholas M., 2009. "Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach," Energy Policy, Elsevier, vol. 37(2), pages 617-622, February.
    9. Judith Giles & Cara Williams, 2001. "Export-led growth: a survey of the empirical literature and some non-causality results. Part 2," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 9(4), pages 445-470.
    10. Irene Henriques & Perry Sadorsky, 1996. "Export-Led Growth or Growth-Driven Exports? The Canadian Case," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 540-555, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kollie, Genesis B., 2020. "Export-Led Growth Hypothesis in ECOWAS: A Panel Data Analysis," African Journal of Economic Review, African Journal of Economic Review, vol. 8(2), July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Dreger & Dierk Herzer, 2013. "A further examination of the export-led growth hypothesis," Empirical Economics, Springer, vol. 45(1), pages 39-60, August.
    2. Arteaga, Julio César & Cardozo, Mónica Liseth & Diniz, Márcia Jucá T., 2020. "Exports to China and economic growth in Latin America, unequal effects within the region," International Economics, Elsevier, vol. 164(C), pages 1-17.
    3. Ana Paula Ribeiro & Paula Gracinda Teixeira Santos & Vitor Carvalho, 2013. "Export-led growth in Europe: Where and what to export?," EcoMod2013 5265, EcoMod.
    4. repec:wsr:wpaper:y:2012:i:084 is not listed on IDEAS
    5. Fakhri J. Hasanov & Muhammad Javid & Frederick L. Joutz, 2022. "Saudi Non-Oil Exports before and after COVID-19: Historical Impacts of Determinants and Scenario Analysis," Sustainability, MDPI, vol. 14(4), pages 1-38, February.
    6. Abo-Zaid Salem M, 2011. "The Trade-Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004," Review of Middle East Economics and Finance, De Gruyter, vol. 6(3), pages 63-93, February.
    7. Joshua J. Lewer & Hendrik Van den Berg, 2003. "How Large Is International Trade’s Effect on Economic Growth?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 363-396, July.
    8. Rishav Bista & Brandon J. Sheridan, 2021. "Economic growth takeoffs and the extensive and intensive margins of trade," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1373-1396, August.
    9. Emirmahmutoglu, Furkan & Kose, Nezir, 2011. "Testing for Granger causality in heterogeneous mixed panels," Economic Modelling, Elsevier, vol. 28(3), pages 870-876, May.
    10. Vera Vargas, Javier Alejandro & Kristjanpoller Rodríguez, Werner, 2016. "Causalidad de Granger entre composición de las exportaciones, crecimiento económico y producción de energía eléctrica: evidencia empírica para Latinoamérica," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 86, pages 25-62, December.
    11. Md Ali Emam & Markus Leibrecht & Tinggui Chen, 2021. "Fish Exports and the Growth of the Agricultural Sector: The Case of South and Southeast Asian Countries," Sustainability, MDPI, vol. 13(20), pages 1-14, October.
    12. Adeel Saleem & Maqbool H. Sial & Ahmed Raza Cheema, 2023. "Does an asymmetric nexus exist between exports and economic growth in Pakistan? Recent evidence from a nonlinear ARDL approach," Economic Change and Restructuring, Springer, vol. 56(1), pages 297-326, February.
    13. Yağmur Sağlam & Hüseyin Avni Egeli, 2018. "A Comparison of Domestic Demand and Export-led Growth Strategies for European Transition Economies," Foreign Trade Review, , vol. 53(3), pages 156-173, August.
    14. repec:bgu:wpaper:134 is not listed on IDEAS
    15. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    16. repec:agr:journl:v:2(602):y:2015:i:2(602):p:43-54 is not listed on IDEAS
    17. Aamer Abu-Qarn & Suleiman Abu-Bader, 2004. "The validity of the ELG hypothesis in the MENA region: cointegration and error correction model analysis," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1685-1695.
    18. Sadorsky, Perry, 2012. "Energy consumption, output and trade in South America," Energy Economics, Elsevier, vol. 34(2), pages 476-488.
    19. Ritu Rani & Naresh Kumar, 2018. "Is There an Export- or Import-led Growth in BRICS Countries? An Empirical Investigation," Jindal Journal of Business Research, , vol. 7(1), pages 13-23, June.
    20. Anca Maria GHERMAN & George ȘTEFAN, 2015. "Exports – trends and impacts on Romania’s economic growth process," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(603), S), pages 43-54, Summer.
    21. Adewuyi, Adeolu O. & Adeniyi, Oluwatosin, 2015. "Trade and consumption of energy varieties: Empirical analysis of selected West Africa economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 354-366.
    22. HAZMAN, Samsudin & OMAR, Khatijah & ABD HALIMB, Abi sofian & SYAZWAN SHAMSUDIN, Muhammad Saiful, 2021. "Export Led Growth Via Intra-Regional Trading An Econometric Analysis Of Asean, Eu, Nafta, Mercosur And Comesa," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 21(2), pages 5-28.
    23. Fugarolas, Guadalupe & Mañalich, Isis & Matesanz, David, 2007. "Are Exports Causing Growth? Evidence On International Trade Expansion In Cuba, 1960-2004," MPRA Paper 6323, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjecr:264378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajol.info/index.php/ajer/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.