IDEAS home Printed from https://ideas.repec.org/a/apa/ijbaas/2015p114-131.html
   My bibliography  Save this article

An Analysis of the Relationship between Foreign Trade and Economic Growth in Myanmar during 1990-2014

Author

Listed:
  • KYAW KYAW LYNN

    (Chiang Mai University, Thailand)

Abstract

This study analyzes the relationship between foreign trade and economic growth in Myanmar over the period 1990-2014. It covers the annual data of GDP, Export and Import of Myanmar from 1980 to 2014. This study adopts two major methodological approaches – exploratory data analysis and descriptive analysis. For the first approach, Augmented Dickey-Fuller (ADF) unit root test and Granger causality test are used under the framework of Vector Autoregressive (VAR) model, which have almost never been studied for the Myanmar case. The second approach includes the analysis of Myanmar’s foreign trade trend with descriptive statistics. The results show that foreign trade did not generate a significant effect on the economic growth of Myanmar. Rather, import growth was negatively influenced by the economic growth of Myanmar. It is found out that export had been determined by the GDP growth. Thus, growth-driven export strategy had been applied for the period of 1990-2014. Also, there was only one causal run from export growth to import growth. The results conclude that foreign trade did not have significant impact on the economic growth of Myanmar over the period of 1990–2014.

Suggested Citation

  • Kyaw Kyaw Lynn, 2015. "An Analysis of the Relationship between Foreign Trade and Economic Growth in Myanmar during 1990-2014," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 1(4), pages 114-131.
    • Handle: RePEc:apa:ijbaas:2015:p:114-131
    DOI: 10.20469/ijbas.1.10001-4
    as

    Download full text from publisher

    File URL: https://kkgpublications.com/business-volume-1-issue-4-article1/
    Download Restriction: no
    File URL: https://kkgpublications.com/wp-content/uploads/2019/04/IJBAS10001-4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.20469/ijbas.1.10001-4?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. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    2. Lütkepohl, Helmut, 1999. "Vector autoregressive analysis," SFB 373 Discussion Papers 1999,31, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    4. Ramos, Francisco F. Ribeiro, 2001. "Exports, imports, and economic growth in Portugal: evidence from causality and cointegration analysis," Economic Modelling, Elsevier, vol. 18(4), pages 613-623, December.
    5. Grossman, Gene M & Helpman, Elhanan, 1990. "Trade, Innovation, and Growth," American Economic Review, American Economic Association, vol. 80(2), pages 86-91, May.
    6. Gregory C. Chow, 2011. "A Model for National Income Determination in Taiwan," Working Papers 1335, Princeton University, Department of Economics, Center for Economic Policy Studies..
    7. László Kónya & Jai Pal Singh, 2006. "Exports, Imports and Economic Growth in India," Working Papers 2006.06, School of Economics, La Trobe University.
    8. Kudo, Toshihiro & Mieno, Fumiharu, 2007. "Trade, Foreign Investment and Myanmar's Economic Development during the Transition to an Open Economy," IDE Discussion Papers 116, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    10. repec:pri:cepsud:222chow is not listed on IDEAS
    11. Nazneen Shahid, 2013. "Export-Led Growth Strategy: Tool for Economic Development in India," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 4(1), pages 58-64, January.
    12. Kudo, Toshihiro, 2005. "The Impact of United States Sanctions on the Myanmar Garment Industry," IDE Discussion Papers 42, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    13. Konya, L., 2004. "Export-Led Growth, Growth-Driven Export, Both or None? Granger Causality Analysis on OECD Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(1).
    14. Nachatchapong Kaewsompong & Songsak Sriboonchitta & Prasert Chaitip & Pathairat Pastpipatkul, 2012. "Econometric modeling of the relationship among macroeconomic variables of Thailand: Smooth transition autoregressive regression model," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(4), pages 21-38, December.
    15. Gregory C. Chow, 2011. "A Model for National Income Determination in Taiwan," Working Papers 1335, Princeton University, Department of Economics, Center for Economic Policy Studies..
    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. Michał Bernardelli & Mariusz Pró chniak & Bartosz Witkowski, 2019. "Towards the similarity of the countries in terms of business cycle synchronization and income level equalization–empirical analysis," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(5), pages 291-302.
    2. Jude Omokugbo OBASANMI & Festus Osasere IMASUEN, 2024. "The Relationship between Institutional Framework and International Trade: An Application of the Gravity Model," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 2254-2263, June.

    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. Man-Keun Kim & Kangil Lee, 2015. "Dynamic Interactions between Carbon and Energy Prices in the U.S. Regional Greenhouse Gas Initiative," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 494-501.
    2. Hanan Naser, 2015. "Can Nuclear Energy Stimulates Economic Growth? Evidence from Highly Industrialised Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 164-173.
    3. Olawumi Dele Awolusi & Ezekiel Jide Fayomi & GANIYU Idris Olayiwola, 2017. "International Trade, Foreign Direct Investment (FDI) and International Technology Transfer: A Comparative Study of Asian and African Economies," Journal of Economics and Behavioral Studies, AMH International, vol. 8(6), pages 127-145.
    4. Soytas, Ugur & Sari, Ramazan, 2006. "Energy consumption and income in G-7 countries," Journal of Policy Modeling, Elsevier, vol. 28(7), pages 739-750, October.
    5. M. T. Alguacil & V. Orts, 2003. "Inward Foreign Direct Investment and Imports in Spain," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 19-38.
    6. Ramona Dumitriu & Razvan Stefanescu, 2015. "The Relationship Between Romanian Exports And Economic Growth After The Adhesion To European Union," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 17-26.
    7. Ericsson, Neil R & Hendry, David F & Mizon, Grayham E, 1998. "Exogeneity, Cointegration, and Economic Policy Analysis," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(4), pages 370-387, October.
    8. Naser, Hanan, 2014. "On the cointegration and causality between Oil market, Nuclear Energy Consumption, and Economic Growth: Evidence from Developed Countries," MPRA Paper 65252, University Library of Munich, Germany, revised 25 Mar 2015.
    9. João Leitão, 2004. "Demand Pull And Supply Push In Portuguese Cable Television," Econometrics 0409011, University Library of Munich, Germany.
    10. Leitão, João & Ferreira, João, 2007. "Liberalization of European Telecommunications and Entrepreneurship: Why German and Portuguese Experiences are so Equal and so Different?," MPRA Paper 5728, University Library of Munich, Germany.
    11. Evans, Olaniyi, 2013. "Testing Finance-Led, Export-Led and Import-Led Growth Hypotheses on Four Sub-Saharan African Economies," MPRA Paper 52460, University Library of Munich, Germany.
    12. Stefanescu, Razvan & Dumitriu, Ramona, 2014. "Investigation on the relationship between Romanian foreign trade and industrial production," MPRA Paper 62547, University Library of Munich, Germany.
    13. Aka, F.B. & Decaluwe, B., 1999. "Causality and Comovement Between Tax Rate and Budget Deficits: Further Evidence from Developing Countries," Papers 9911, Laval - Recherche en Politique Economique.
    14. James E. Payne, 2003. "A Survey of the International Empirical Evidence on the Tax-Spend Debate," Public Finance Review, , vol. 31(3), pages 302-324, May.
    15. Chiou-Wei, Song Zan & Chen, Ching-Fu & Zhu, Zhen, 2008. "Economic growth and energy consumption revisited -- Evidence from linear and nonlinear Granger causality," Energy Economics, Elsevier, vol. 30(6), pages 3063-3076, November.
    16. Nieh, Chien-Chung & Yau, Hwey-Yun, 2004. "Time series analysis for the interest rates relationships among China, Hong Kong, and Taiwan money markets," Journal of Asian Economics, Elsevier, vol. 15(1), pages 171-188, February.
    17. Adrian C. Darnell, 1994. "A Dictionary Of Econometrics," Books, Edward Elgar Publishing, number 118, March.
    18. Leitão, João, 2007. "The Taylor Effect on the Performances of the Red Devils’ Football Brand," MPRA Paper 3244, University Library of Munich, Germany.
    19. Lin, Tsoyu Calvin & Lin, Zong-Han, 2011. "Are stock and real estate markets integrated? An empirical study of six Asian economies," Pacific-Basin Finance Journal, Elsevier, vol. 19(5), pages 571-585, November.
    20. Lee, Chien-Chiang & Chien, Mei-Se, 2010. "Dynamic modelling of energy consumption, capital stock, and real income in G-7 countries," Energy Economics, Elsevier, vol. 32(3), pages 564-581, May.

    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:apa:ijbaas:2015:p:114-131. 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: Professor Dr. Bahaudin G. Mujtaba (email available below). General contact details of provider: https://kkgpublications.com/business/ .

    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.