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Does Export Promotion Increase Economic Growth? Some Cross‐Section Evidence

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  • Turan Subasat

Abstract

This article is concerned with the empirical link between exports and economic growth. Its core objectives are to attempt control for structural features that determine ‘export orientation’ in order to derive an index of export promotion that captures policy effects only, and then to test whether or not this index is a determinant of growth. The empirical work presented casts doubt on the overall validity of the export‐led development hypothesis. The analysis suggests that middle‐income countries that are more export‐oriented grow faster than relatively less export‐oriented economies. For low‐ and high‐income countries, however, export promotion does not have any significant impact on economic growth.

Suggested Citation

  • Turan Subasat, 2002. "Does Export Promotion Increase Economic Growth? Some Cross‐Section Evidence," Development Policy Review, Overseas Development Institute, vol. 20(3), pages 333-349, July.
    • Handle: RePEc:bla:devpol:v:20:y:2002:i:3:p:333-349
    DOI: 10.1111/1467-7679.00175
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    Cited by:

    1. Richard Gardiner & Petr Hajek, 2020. "Interactions among energy consumption, CO2, and economic development in European Union countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 723-740, July.
    2. Palakiyèm Kpemoua, 2016. "Exports and Economic Growth in Togo [Exportations et croissance économique au Togo]," Working Papers halshs-01332738, HAL.
    3. Matthew J. Kromtit & Charles Kanadi & Dorathy P. Ndangra & Suleiman Lado, 2017. "Contribution of Non Oil Exports to Economic Growth in Nigeria (1985-2015)," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(4), pages 253-261, April.
    4. Amjad, Y. & Naseeem, N.A.M & Azman-Saini, W.N.W. & Masron, tajul & Kriskkumar, K., 2018. "Export-led Growth Hypothesis in Malaysia: New Evidence Using Disaggregated Data of Exports," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 167-179.
    5. Daouda Coulibaly & Fulgence Zran Goueu, 2019. "An Empirical Analysis of the Link between Economic Growth and Exports in Côte d’Ivoire," International Business Research, Canadian Center of Science and Education, vol. 12(9), pages 94-104, September.
    6. Madani , Dorsati H. & Mas-Guix, Natalia, 2011. "The impact of export tax incentives on export performance : evidence from the automotive sector in South Africa," Policy Research Working Paper Series 5585, The World Bank.
    7. Olusola Ogunjimi & Esther Aderinto & Toluwalope Ogunro, 2015. "An Empirical Analysis on the Relationship between Non-Oil Exports and Economic Growth in Nigeria," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(12), pages 68-78, December.
    8. Vishal Kumar Singh & Amit Gautam, 2022. "Structural Investigation of Export Assistance and Performance of Handloom Exporters," Metamorphosis: A Journal of Management Research, , vol. 21(1), pages 7-18, June.
    9. Kar Muhsin & Peker Osman & Kaplan Muhittin, 2008. "Trade Liberalization, Financial Development and Economic Growth in The Long Term: The Case of Turkey," South East European Journal of Economics and Business, Sciendo, vol. 3(2), pages 25-38, November.
    10. Ramona Simut & Ioana Mester, 2014. "An Investigation Of Cointegration And Causality Between Investments, Exports, Openness, Industrial Production And Economic Growth: A Comparative Study For The East European Countries," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 369-378, July.
    11. Mester Ioana Teodora & Simut Ramona Marinela, 2011. "An Investigation Of Longrun Relationship Between Economic Growth, Investment And Export In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 316-321, July.
    12. Dumitriu, Ramona & Stefanescu, Razvan & Nistor, Costel, 2010. "Exports as an engine for the economic growth: the case of Romania," MPRA Paper 36581, University Library of Munich, Germany, revised 10 Feb 2012.

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