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EXPORTS AND ECONOMIC GROWTH: Further Evidence from Asian LDCs

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  • Pradurnna B. RANA*

Abstract

Fueled by the adverse conditions in the current international economic environment, the debate concerning the relative merits of development strategies based on import-substitution or export-oriented policies, is starting anew. This paper re-estimates Feder’s (1982) model using data from fourteen Asian LDCs during 1965·1982 and finds that, although the social marginal factor productivities in the export sector declined significantly in the post-1973 period providing some support for the elasticity pessimism argument, they were, nevertheless, higher than in the non·export sector. This suggests that despite the deterioration of the international economy, reallocation of the export sector from the non·export sector could have increased growth rates.

Suggested Citation

  • Pradurnna B. RANA*, 1986. "EXPORTS AND ECONOMIC GROWTH: Further Evidence from Asian LDCs," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 5(2), pages 163-178.
    • Handle: RePEc:pje:journl:article1986winiii
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    Cited by:

    1. Aleh Mazol, 2015. "Exchange Rate, Imports of Intermediate and Capital Goods and GDP Growth in Belarus," BEROC Working Paper Series 32, Belarusian Economic Research and Outreach Center (BEROC).
    2. 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.
    3. Hye, Qazi Muhammad Adnan & Wizarat, Shahida & Lau, Wee-Yeap, 2013. "Trade-led growth hypothesis: An empirical analysis of South Asian countries," Economic Modelling, Elsevier, vol. 35(C), pages 654-660.
    4. Jong Park & Penelope Prime, 1997. "Export performance and growth in China: a cross-provincial analysis," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1353-1363.

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