Effects of agricultural, manufacturing, and mineral exports on. Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Both the ols regression and granger causality results support the hypothesis that agricultural exports led economic growth in nigeria. First, poverty cannot be reduced in isolation from economic growthan observation that has. Pdf relationship between exports and economic growth of.
Import impact of economic growth on regional economies martins priede xianjiaotongliverpool university abstract. Dawson 2005 studied the contribution of agricultural exports to economic growth in least developed countries. Southern economic journal 2002, 684, 859874 trade and gdp growth. The second view is that causality runs from economic growth to exports. Afghanistan is an importing country because of the fact that most of industries, including agriculture and handicraft were recently destroyed. In a recession, firms will be more reluctant to invest, and therefore, there will be a slower growth in exports. Expanding exports, personal consumption expenditures, and business and residential investment together added another 3. Pdf export performance and economic growth moges alemu. This paper is set to contribute to the extant literature by investigating econometrically the existence or not of a longrun relationship between globalization and economic growth in nigeria and more precisely the. In order to achieve this purpose, annual data for the periods between 1980 and 2015 was tested by. However, the role played by domestic demand has been little studied. Economic growth is one of the most important determinants of economic welfare. If some kind of slowing down is inevitable for any new growth 7 as the aggregate sectoral classification for these services is insurance and financial services, the. Government and the economy economic goals, policy and effects.
The role of net export on economic growth in usa article pdf available in journal of applied economic sciences volume xii,issue 349 january 2017 with 2,293 reads how we measure reads. Review of literature the detrimental effects of export instability on economic growth and investment were investigated for less developing countries by macbeen and maizels, 1968 for eleven developing countries over the time period 195060 by using single equation regression model. Impact of exports and imports scholarlink research. The importance of trade for developing countries abstract this paper indicates the benefits developing countries may derive through international trade. Relationship between exports, imports, and economic growth. Relationship between exports, imports, and economic growth in france.
The results are based on annual data collected from 1960 to 2009. This investment could increase the long run productivity of the economy and therefore, could help boost exports. Relationship between exports and economic growth of pakistan. The contractions in exports lead to the contraction in namibias economic growth. The relationship among exports, imports and economic. The causal relationship between exports and economic growth. Dec 27, 2016 this paper, prepared in the framework of granger casuality technique extended by taking account of recent relevant literature, analyzes the causality between exports, imports and economic growth in kosovo. Ekanayake1 this paper uses cointegration and errorcorrection models to analyze the causal relationship between export growth and economic growth in eight asian developing countries using annual data from 1960 to 1997. Economic growth affect exports growth if the domestic production increases faster than the domestic demand sharma and dhakal 1994, ahmad and harnhirun 1996, shan and tian 1998.
The relationship between export growth and economic growth has been a popular subject of debate among development economists. This paper investigates the impact of agricultural exports on economic growth in nigeria using ols regression, granger causality, impulse response function and variance decomposition approaches. Effects of exports instability on economic growth 99 2. The successful records of the four dragons or even four tigers have received much attention in the literature on economic growth and have revived the debate on the effectiveness of outward.
Noula armand gilbert senior lecturer, sama gustave linyong phd student gwah munchunga divine m. The results, however, show an inverse relationship. Modeling the impact of exports on the economic growth of pakistan. Growth creates jobs economic growth generates job opportunities and hence stronger demand for labour, the main and often the sole asset of the poor. Among economists there has generally been a lack of agreement as to the specific relation between exports and economic growth. Pdf impact of exports on economic growth empirical evidence of. It rev1ews recent trends in world trade in major product groups. Pdf the empirical study examined the impact of exports on the economic growth of pakistan.
An empirical study on import, export and economic growth in. The causal relationship between exports and economic. Higher productivity leads to a lower unit cost, which facilitates exports growth kaldor 1967. Summary among economists there has generally been a lack of agreement as to the specific relation between exports and economic growth. Economic growth, inflation, and unemployment are the big macroeconomic issues of our time. Rangasamy 2008 examined the exports and economic growth relationship for south africa, and provides the evidence that the unidirectional granger causality runs from exports to economic growth sharma p. Effects of exports instability on economic growth in saarc.
Based on the results, the study recommends that policy makers should focus on maintaining an open and export oriented policy in order to ensure growth in the economy and also to adequately promote economic growth for export expansion. The duo crisis of food and finance around the world had left agricultural exports and economic growth on its lowest ebb in namibia. Paper empirically analyzes impact on regional gdp per capital of increased import volume and. This suggests that export expansion might not be an efficient strategy to improve provincial economic performance in south africa as neither exports nor economic growth is sensitive to each other in almost.
Econometric issues are addressed with the use of crosssectional analysis. Empirical findings show that the growthled export hypothesis is valid in those countries and growth is rather shaped by increase in import demand. Economic policy what are the commonly held goals of economic management. So many researchers have looked at single country effect of export on economic growth, while there are also substantial authors who have examined crosscountry empirical. Aug 28, 2012 this paper investigates the causality between exports and economic growth of pakistan, through the application of econometric technique granger causality by using real exports of pakistan, real gdp of pakistan, and real terms of trade of pakistan. The role of exports in african economic development. In this paper, export led growth elg, import led growth ilg, growth driven exports gde, and growth. For the causal analysis between exports and economic growth, recent empirical studies have adopted the causality approach suggested by granger 1969 and sims 1972. The hypothesis presented here is that there is a causal relationship between the two, that this relationship is one of interdependence rather than of unilateral causation, but that it is mainly a rise in exports that stimulates an increase in aggregate economic growth. According to regression results, it is found that exports are a significant determinant of economic growth. Exports and economic growth in asian developing countries. Kayoussi the kh of lntentational studies, uniuetsity of washington, seattle, w98195, usa received august 1982, final version received december 1982 this paper examines the relationship between export expansion and economic growth in a sample of. Pdf the role of net export on economic growth in usa. Each year the board of trustees of the old age, survivors and disability insurance.
In 2009 namibias exports contracted by more than 12% largely due to the global financial crisis. The nominal value of exports leapt from ld libyan dinars 6489. The causal relationship between exports and economic growth in. This research surveys relationship between exports and economic growth in the industrial sector in iran. In turn, increasing employment has been crucial in delivering higher growth. Read pages 634641 in we the people and to understand why each of these goals is a good thing. On exports and economic growth english the world bank. Relationship between importexports and economic growth. This paper analyzes the sources of growth in the period 19641973 for a group of semiindustrialized less developed countries. The empirical results from granger causality technique clearly indicate that there exists unidirectional causality from gdp to exports in pakistan but not vice versa.
This paper investigates the relationship between exports, imports, and economic growth in panama. Abstract the nature of the relationship between exports and countrys economic growth has been one of the most debated topic in the recent past, yet with little consensus. However, this study will test of the impact of exports and imports on the economic growth of tunis over the period 19772012. Causal relations in the united states and canada george k. However, many evidences fail to unequivocally support a robust export economic growth nexus.
The relationship between exports and economic growth is a frequent topic of discussion, when economists try to explain the different levels of economic growth between countries. The relationship between export and economic growth in libya arab jamahiriya 71 approximately 95% of export earnings, 75% of the government receipts and 3040% of the gross domestic product energy information administration, 2002. Inflation and unemployment are closely related, at least in the shortrun. The relationship between export and economic growth in libya. Department of economics, university of the western cape.
Granger causality results support the hypothesis that agricultural exports led economic growth in nigeria. Exports of goods and services represent one of the most important sources. Empirical results show that there is a unidirectional causality from economic growth to export. Zestos and xiangnan taof causal relations between the growth rates of exports, imports, and the gdp of canada and the. Central to this debate is the question of whether strong economic performance. In a period of economic growth, firms have more money to invest. An empirical analysis on the relationship between non oil. An empirical analysis on the relationship between nonoil exports and economic growth in nigeria olusola ogunjimi, esther aderinto and toluwalope ogunro lead city university, ibadan oyo state email. Northholland export expansion and ecqnonuc growth further empirical evidence rostam m. National kaohsiung university of applied sciences and national chungcheng university during the process of economic development, different economic policies are adopted in. One, referred to as the conventional neoclassical model, assumes that y 0, and thus presents gdp growth as the result of capital and labor growth only. Pavel gertler,national bank of slovakia the main message from the classical model of international trade is that growth in trade leads by way of comparative advantages to stronger economic performance in the future. Analyze the impact on the growth of industrial exports in terms of value added of.
The aim of this paper, therefore, is to econometrically. Dec 10, 2008 this study analyses the relationships between export, import and economic growth for the transition economies. The outcome indicates that exports and imports have positive effect of economic growth. At an extreme end, some authors find no causal relationship between the two series mutairi, 1993. Export diversification and economic growth iii about the series the commission on growth and development led by nobel laureate mike spence was established in april 2006 as a response to two insights. The analysis also reveals that the exports along with labor force, investment and domestic credit to private sector. A comparative study of mauritius and tunisia s i m o n m i c h a e l c a r e y a thesis submitted to the victoria university of wellington in fulfilment of the requirements for the degree of master of arts in economics victoria university of wellington 2011. In stark contrast to these growth contributors, expanding imports seem to have pulled overall economic growth down by 1. There existed strong evidence for long run granger causality in all countries. Masoud albiman md and suleiman nn 2016 investigated the nexus between exports, imports and economic growth in malaysia, using annual data for the period 1967 2010. Import impact of economic growth on regional economies. On exports and economic growth izani ibrahim abstract this paper focuses on a new estimate of feder 1982s model on productivity and externality effect of exports in six asian countries. Contribution of agricultural exports to economic growth in.
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