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Export and economic growth in Southeast Asia current Newly Industrialized Countries: Evidence from nonparametric approach

Author

Listed:
  • Shiok Ye Lim

    (Labuan School of International Business and Finance, Universiti Malaysia Sabah)

  • Mohd Fahmi Ghazali

    (Labuan School of International Business and Finance, Universiti Malaysia Sabah)

  • Chong Mun Ho

    (School of Science and Technology, Universiti Malaysia Sabah)

Abstract

Nonlinearity in the nexus of export and economic growth has not been addressed in most of the previous studies. If the true relationship is nonlinear, then inference from linear model may be invalid. This study re-examines the exports-growth nexus in four current Newly Industrialized Countries by nonparametric methodology. Results from Breitung cointegration test show existence of nonlinearities in the cointegration relationship of exports and economic growth in Malaysia, Thailand and Indonesia. With evidences of nonlinearities from cointegration test, nonparametric causality test based on rank series provides more reliable results than conventional linear model. The nonparametric causality test indicates a bilateral causality between exports and economic growth in Malaysia and Thailand. On the contrary, Indonesia support the hypothesis that growth driven exports. This results highlight that export is an engine to economic growth through its multiplier effect but it is not a general rule for all the Newly Industrialized Countries.

Suggested Citation

  • Shiok Ye Lim & Mohd Fahmi Ghazali & Chong Mun Ho, 2011. "Export and economic growth in Southeast Asia current Newly Industrialized Countries: Evidence from nonparametric approach," Economics Bulletin, AccessEcon, vol. 31(3), pages 2683-2693.
    • Handle: RePEc:ebl:ecbull:eb-11-00510
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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P241.pdf
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    Citations

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    Cited by:

    1. Juan G Brida & Bibiana Lanzilotta & Lucia I Rosich, 2021. "On the empirical relations between producers expectations and economic growth," Economics Bulletin, AccessEcon, vol. 41(3), pages 1970-1982.
    2. Juan Gabriel Brida & Bibiana Lanzilotta & Lucía Rosich, 2019. "Common trends in producers’ expectations, the nonlinear linkage with Uruguayan GDP and its implications in economic growth forecasting," Documentos de Trabajo (working papers) 19-28, Instituto de Economía - IECON.
    3. Brida, Juan Gabriel & Pereyra, Juan Sebastián & Such, María Jesús & Pulina, Manuela, 2011. "Causalidad entre turismo y crecimiento económico de largo plazo: una revisión crítica de la literatura econométrica [Causality between tourism and long-term economic growth: a critical review of th," MPRA Paper 37332, University Library of Munich, Germany, revised 2011.
    4. 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.

    More about this item

    Keywords

    Export-led growth; Nonparametric; Cointegration; Causality;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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