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Export-led Growth in South Asia: A Panel Cointegration Analysis

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  • Purna Chandra Parida
  • Pravakar Sahoo

Abstract

In this paper, we attempt to examine the export-led and manufacturing export-led growth hypothesis for four South Asian Countries; namely, India, Pakistan, Bangladesh and Sri Lanka, using Pedroni's panel cointegration technique for the period 1980-2002. In this context we estimate growth accounting equations to investigate the impact of exports, manufacturing exports and other important physical and human capital variables on both total GDP and non-export GDP. The study finds long-run equilibrium relationship between GDP (and non-export GDP) and exports along with other variables supporting export-led growth hypothesis. The results also substantiate the existence of manufacturing export-led growth hypothesis. Further, we find that export, fixed capital formation, public expenditure on health and education have statistically significant coefficients re-emphasizing the importance of these variables for higher economic growth.

Suggested Citation

  • Purna Chandra Parida & Pravakar Sahoo, 2007. "Export-led Growth in South Asia: A Panel Cointegration Analysis," International Economic Journal, Taylor & Francis Journals, vol. 21(2), pages 155-175.
    • Handle: RePEc:taf:intecj:v:21:y:2007:i:2:p:155-175
    DOI: 10.1080/10168730701345414
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    References listed on IDEAS

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    1. Anne O. Krueger, 1978. "Foreign Trade Regimes and Economic Development: Liberalization Attempts and Consequences," NBER Books, National Bureau of Economic Research, Inc, number krue78-1.
    2. Paul Krugman, 1986. "Strategic Trade Policy and the New International Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610450, December.
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