Export–led growth and structural change: evidence from Malaysia

Many studies have tried to establish the causal link between export expansion and economic growth. This contribution is to recognize that structural changes will change the sources of growth and this will affect the export-growth relationship. A country case study approach is used focusing on Malaysia, a country with one of the world's highest sustained growth rates and a long history of commodity trade. We use VAR analysis of Malaysian quarterly trade and GDP growth from 1965 to 1996. Trade data are disaggregated into primary and manufactures exports and causality tests are applied to the entire period as well as two subperiods #150 the 1965 #1501980 period when policy emphasis was on import substitution and the 1981#1501996 period when policies favoured export-led growth. Statistical tests confirm export-led growth for the full period and for the period to 1980 but tests on the 1981#1501996 period show growth causing exports. Primary exports had a stronger direct impact on economic growth than manufactures. The weakening support for export-led growth after Malaysia shifted to an export-oriented development strategy is associated with structural changes associated with industrialization. Interaction among trade and growth variables becomes more complex with a broadening export base and more diverse sources of growth.     

Trade flows,relative prices,and effective exchange rates: a VAR on Ethiopian data

The dynamic response of trade flows to price and effective exchange rate changes is examined via VAR using quarerly data from Ethiopia for the period 1973(i)–1985(iv). The results show one-way Granger-causality running from prices and exchange rates to imports and exports without significant feedback. Imports and exports exhibit similar response patterns to unexpected changes in relative prices and exchange rates. The responses of imports and exports are larger and the adjustment takes longer when relative prices rather than exchange rates caused a change in international prices. In the long-run, changes in prices account for a larger percentage of the forecast error variances in imports and exports than exchange rate changes. It is shown that devaluation may have an initial adverse effect on the trade balance.     

Foreign Direct Investment,Merchandise and Services Trade in a Transition Economy: The Case of Cambodia

Since the liberalization of trade and investment in the 1990s, inward foreign direct investment (FDI) has been seen to play a greater role in forging trade flows, integration into the regional and international markets and economic development for a transition economy such as Cambodia. Despite her recent progress in attracting FDI and fostering trade, the direction of causality between inward FDI, exports and imports of merchandise as well as services has not been empirically explored. The findings show that inward FDI not only can promote both merchandise and services exports but also indicate the presence of backward and forward linkages, which could result in positive externalities. However, based on the impulse response analysis, it seems that merchandise exports are more vulnerable than services exports to an unanticipated shift in FDI inflows in the medium run.     

An Analysis of Exports and Growth in India: Cointegration and Causality Evidence (1971–2001)

The relationship between exports and economic growth has been analysed by a number of recent empirical studies. This paper re‐examines the sources of growth for the period 1971–2001 for India. It builds upon Feder's (1983 ) model to investigate empirically the relationship between export growth and GDP growth (the export led growth hypothesis), using recent data from the Reserve Bank of India, and by focusing on GDP growth and GDP growth net of exports. We investigate the following hypotheses: (i) whether exports, imports and GDP are cointegrated using the Johansen approach and Breitung's nonparametric cointegration test; (ii) whether export growth Granger causes GDP growth; (iii) and whether export growth Granger causes investment. Finally, a VAR is constructed and impulse response functions (IRFs) are employed to investigate the effects of macroeconomic shocks.     

Oil Exports, Non-Oil GDP, and Investment in the GCC Countries

This paper studies the long-run and short-run relationships between oil exports, non-oil GDP, and investment in five major oil-exporting countries. Its goal is to verify the effect of natural resources exports on economic performance. It considers the effect of cross-sectional correlations and uses the corresponding panel unit-root tests to study the long-run characteristics of the data series. The results show that resources' exports have no long-run relationship with the macroeconomic variables. A VAR analysis is used to estimate the short-run dynamics and shows that the effect of oil exports on those variables depends on local policies.     

Macroeconomic Impacts on Bulgarian Agriculture during Transition

An unstable and erratic macroeconomy in an economy in transition might be expected to affect agricultural performance. This is tested for Bulgaria between 1992 and 1997 using impulse response functions from a vector autoregressive (VAR) model. Despite data limitations, it is found that shocks to the foreign exchange rate and interest rate feed into farm prices and agricultural exports but equilibrium will be re–established within 5 years. Agricultural policies may not be sufficient to counteract the wider macroeconomic forces.     

FDI、对外贸易对区域经济增长的影响——以湖南省为例

本文利用湖南省1985～2006年经济数据,根据协整理论和VAR模型等方法,从不同角度研究了FDI、对外贸易和经济增长之间的动态关系。实证结果表明,FDI、对外贸易与经济增长间具有长期均衡关系,且湖南省地区生产总值的增长与FDI和进口额都有双向因果关系;经济增长对进出口的波动冲击都表现出正向响应,而FDI由于地区因素的影响,作用较小。     

Causality Between Exports and Economic Growth: What do the Econometric Studies Tell Us?

This paper contains an assessment of major econometric studies that have estimated the causality between exports and economic growth. These studies have used a variety of methodological approaches, such as Granger causality, cointegration with multivariate error correction models, exogeneity and structural invariance, VAR models with variance decomposition, and impulse response functions. The assessment in this paper refers both to the methodologies employed as well as to the empirical findings. A major conclusion is that empirical support for the export‐led growth in both the developed and the developing countries is considerably weaker than was estimated on the basis of earlier correlation and production function studies.     

A multivariate cointegrated model testing for temporal causality between exports and outward foreign investment: the Spanish case

Historically, outward foreign direct investment has been contemplated as an alternative way of firms' internationalization. In this line, a relational substitution between exports and foreign direct investment would be expected. However, this seems to contrast with recent developments in the ‘new trade theory’ which show that the volume of trade and the emergence of multinational firms may be positively related one to the other. This paper investigates if some empirical evidence exists either supporting a substitution or a complementary relationship between both forms of internationalization. With this aim, an aggregate time series approach was adopted using quarterly aggregate data (seasonal adjusted) from the Spanish economy covering the period 1970.I–1992.III. A vector autoregressive model was employed for both multivariate cointegration analysis and Granger temporal causality testing. The strength and direction of causal relationships are shown through the dynamic variance decomposition and the impulse response technique. Once controlling for relative market size and prices, the results provide evidence of a positive long-term Granger causality going from foreign direct investment to exports, although not in the opposite direction.     

加工贸易出口与反倾销的动态关系

在描述我国加工贸易出口和国外对华反倾销现状的基础上,运用协整理论、建立误差修正模型和进行Granger因果关系检验分析加工贸易与反倾销之间的因果关系,然后建立VAR模型、进行脉冲响应分析和构建方差分解模型进一步研究了两者的动态变化关系。结果表明:反倾销对我国加工贸易出口具有显著的负向影响,并且该影响随着时间的推移而逐渐增强;加工贸易出口对反倾销的影响并不十分明显,但从长期看,加工贸易出口增长同样会加剧国外对华反倾销。     

Exports and economic growth in industrialized countries

The prima-facie causal relationships between growth, exports and factor inputs (capital and labour) are investigated in five industrialized countries (germany, Itlay, Japan, United Kingdom and United States) over the period 1960–87 by analysing a four-variable vector autoregressive (VAR) model for each country. Our results indicate that Germany and Japan experienced export-led growth. Reverse causality between exports and growth is found in the case of the US and UK, while to causal relationship between exports and output is found for Itlay.     

The trade balance and the terms of trade in a two-country two-sector OLG economy

We consider a two-country, two-sector OLG model. It is shown that the trade balance and the relative price of exports are always positively related when exports are labor intensive regardless of the elasticity of intertemporal substitution in consumption. A large response of savings to future prices becomes a sufficient condition for an inverse relation between these variables only if exports are capital intensive. In this case, a rise in the terms of trade can be followed by a trade balance decline if consumption goods are capital intensive and the income effect implied on savings is negative and large.     

International trade between consumer and conservationist countries

We consider trade between a ‘consumer’ country with an open access renewable resource and a ‘conservationist’ country that regulates resource harvesting to maximize domestic steady-state utility. In what we call the mild overuse case, the consumer country exports the resource good and suffers steady-state losses from trade, as suggested by the conventional wisdom that weak resource management standards confer a competitive advantage on domestic firms in the resource sector but cause welfare losses. Strikingly, however, when the resource stock is most in jeopardy, the conservationist country exports the resource good in steady state and both countries experience gains from trade.     

影响中国服务贸易出口的可量化因素分析

根据1990-2004年中国服务贸易出口及其可量化因素的时间序列数据建立的多元线性回归模型,印证了人均国内生产总值、世界GDP增长率、服务业占GDP的比重、货物贸易出口额等因素对中国服务贸易出口的影响。因此,应优化服务贸易出口结构。扩大市场开发度和加大政府支持力度,以增加中国服务贸易的出口。     

出口贸易与能源消费关系的实证分析——以广西出口贸易为例

本文运用格兰杰因果关系检验、脉冲响应函数和方差分解方法,对广西出口贸易与能源消费之间的因果、动态关系进行了实证检验与分析。结果发现：广西出口贸易与能源消费之间存在双向因果关系,出口贸易波动对能源消费产生持续负向影响,出口贸易对能源消费具有较强的依赖性;能源消费波动对出口贸易造成较大正向影响;随着时间的推移,这种影响对方波动所做出的贡献率呈现不断增大趋势。在当前能源供给压力趋紧的情势下,为保持出口贸易持续快速增长,实现节能减排目标,广西需要优化出口产品结构,降低高能耗产品出口比例,同时促进外贸生产企业创新,发展节能技术,大幅提高能源利用效率。     

Preferential trade agreements and manufactured goods exports: does it matter whom you PTA with?

This article explores two questions. First, do preferential trade agreements (PTAs) affect manufactured goods exports of developing countries? Second, does it matter for developing countries whom they sign the PTAs with? We find that the answer to both questions is yes. Using bilateral manufactured goods exports data from 28 developing countries during 1978–2005; we find that South–South PTAs have a significantly positive effect on manufactured goods exports. In contrast, no such effect is detected in the case of South–North PTAs. We confirmed the robustness of these findings to estimation methodology, sample selection, time period, zero trade flows and multilateral trade resistance.     

Trade Union Rights,Democracy, and Exports: a Gravity Model Approach*

The paper uses a gravity trade model to evaluate the effects of trade union rights and democracy on exports for the 1993 to 1999 period for four classifications of manufacturing industries by labor‐intensity. The model includes data for 162 countries and used eight indicators of trade union rights and democracy, including those constructed by the authors. The paper finds robust relationships between stronger trade union rights and higher total manufacturing exports and between stronger democracy and higher total exports, total manufacturing exports, and labor‐intensive manufacturing exports. The paper finds that the relationship between trade union rights and labor‐intensive manufacturing exports is highly sensitive to the classification of labor‐intensive manufacturing industries and to model specification, yielding statistically significant results of opposite sign depending on assumptions.     

Scale economies,cost complementarities and technical progress in Indian banking: evidence from fourier flexible functional form1

The paper analyses the relations between foreign policy and export performance. The paper deals with exports of selected European countries and the USA to Middle Eastern countries including Israel. Cointegration analysis is used to identify common stochastic trends in export series. A long-term relationship implies no significant influence of foreign policy differences on trade performance. According to the Johansen tests applied to bivariate and multivariate models, German, Austrian, Dutch and EU exports to Israel are cointegrated with the US exports, while Swiss exports are never cointegrated with the exports of these countries. This result confirms the importance of foreign policy in trade performance.     

Tourism,trade and growth: the case of Cyprus

Although the relationship between international trade and economic growth has found a wide application area in the literature over the years, this can not be said about tourism and growth or trade and tourism. This study employs the bounds test for cointegration and Granger causality tests to investigate a long-run equilibrium relationship between tourism, trade and real income growth, and the direction of causality among themselves for Cyprus. Results reveal that tourism, trade and real income growth are cointegrated; thus, a long-run equilibrium relationship can be inferred between these three variables. On the other hand, Granger causality test results suggest that real income growth stimulates growth in international trade (both exports and imports) and international tourist arrivals to the island. Furthermore, growth in international trade (both exports and imports) also stimulates an increase in international tourist arrivals to Cyprus. And finally, real import growth stimulate growth in real exports in the case of Cyprus.