Export and economic growth: Further time series evidence from less-developed countries

The purpose of this paper is to examine the role of export-growth linkage in India, Pakistan, the Philippines, Malaysia, and Thailand on the basis of time series data from 1973 to 1993. The empirical results indicate that exports have a positive and significant impact on economic growth when a country has achieved some level of economic development. The result also signifies the importance of liberal market policies by pursuing export expansion strategies and by attracting foreign investments.     

Exports and economic growth: Further evidence

This paper investigates the relationship between exports and economic growth in a group of eleven developing countries that have already established an industrial base. Separate consideration is given to manufactured and to total exports; in the case of the latter, adjustment is made for domestic and foreign investment and for increases in the labor force.     

Export expansion and economic growth: Evidence from Chinese Provinces

This paper examines the effect of exports on economic growth based on the data of 30 Chinese provinces from 1978 to 1995. A theoretical model is based on the neoclassical production function, in which exports can affect output growth. It was found that the growth rate of exports and the growth rate of per capita output are positively related; i.e. provinces with faster growth of exports grew faster than the provinces with slower export growth. It was also found that investment in state enterprises was insignificantly related to output growth, while investment in private enterprises was positively related to growth.     

Effects of STABEX on ACPs' economic growth: Further evidence

The paper deals with the economic growth of the open and small developing countries which signed the Lomé Convention (henceforth ACPs). Results showing that earnings instability damages their economic performance can be used to support the EU policy of guaranteeing financial aid to those countries suffering reductions in export proceeds. The second section of the paper analysing the workings of STABEX, however, highlights certain weaknesses in the effectiveness of STABEX transfers when their impact on economic growth is considered. The general conclusion is that, if the current EU-ACP negotiations for Lomé V are to be successful, then some aspects of the scheme (eligibility criteria and use of funds) will have to be radically changed.     

Long-run determinant of Korean economic growth: empirical evidence from manufacturing

This paper challenges the recent contrarian view that the phenomenal growth of East Asian NICs is fuelled mainly by the accumulation of production inputs not by TFP growth. To appraise this view, we investigated and re-evaluated South Korean manufacturing growth (1973(Q1)–1993(Q4)). Using Johansen's cointegrating analysis, our results show that South Korean manufacturing appears to have increasing returns to scale in production technology. The ‘learning by doing’ effect defined by Lucas (1988) is empirically supported. This effect appears to be observed as a long-run determinant of South Korean manufacturing growth. Consequently, South Korean manufacturing growth can be described by an endogenous economic growth model, such as the Lucas (1988) model, contradicting the contrarian view.     

Exports and economic growth:some empirical evidence from the Arab Gulf countries

This paper investigates the relationship between exports and economic growth in four of the Arab Gulf countries, namely, Saudi Arabia, Kuwait, UAE, and Oman for the period 1973–93. The estimates presented indicate a positive and significant relation between the two variables. Also, the statistical adequacy of the models used is supported by the following diagnostic tests. The Bruesch-Godfrey statistic suggests the absence of serial correlation. The Farely-Hinich test fails to reject the null hypothesis that the models are structurally stable. And both the White and Hausman specification tests show that the models are correctly specified.     

FDI, services trade and economic growth in India: empirical evidence on causal links

This article examines the linkages between inward FDI, services trade (export and import) and economic output using co-integration and VECM causality test. These linkages have been explored both at the aggregate and at the sectoral levels (manufacturing and services). The empirical findings confirm the long-run relationship among these variables. Causality results indicate the presence of bi-directional causal relationship between FDI and economic output as well as between services exports and economic output. The results also bring out feedback relationship between services export and FDI, reconfirming the presence of complementary relationship between the two. At the sectoral level, we find at least a unidirectional causality from FDI and services exports to both manufacturing and services output and also cross-sectoral spillover effects from manufacturing output to services output and vice versa.     

Export sophistication and economic growth: Evidence from China

We consider the effect of export sophistication on economic performance by appealing to regional variation within one single country (China) over the 1997-2009 period. We find evidence in support of Hausmann, Hwang and Rodrik (2007), in that regions specializing in more sophisticated goods subsequently grow faster. We find substantial variation in export sophistication at the province and prefecture level, controlling for the level of development, and that this sophistication in turn drives growth. Our results suggest that these gains are limited to the ordinary export activities undertaken by domestic firms: no direct gains result from either processing trade activities or foreign firms, even though these are the main contributors to the global upgrading of China's exports. As such, the extent of assembly trade and foreign entities should be distinguished in order to measure the true movement in a country's technology and the contribution of exports to economic growth.     

Growth and export expansion in developing countries: Some empirical evidence

This paper analyzes the empirical relationship between economic growth and export expansion in developing countries as observed through an intercountry cross-section. Employing data from 55 middle income developing countries for the period 1960–1977, bivariate tests revealed significant positive associations between growth and various other economic variables including the growth of manufacturing output, investment, total exports, and manufacturing exports. A production function model was also specified and estimated with the cross-sectional data. The results indicated that export performance was important, along with capital formation, in explaining the intercountry variance in GDP growth rates during the 1960–1977 period.     

Inflation and economic growth: a multi-country empirical analysis

The world eocnomy is currently adjusting to a low inflation regime which has implicastions for the cross-country distribution of world growth opportunities. In contrast to previous related work which assumes unidirectional causality, this paper uses the Granger methodology to examine both the direction and pattern of causality between inflation and economic growth in 70 countries using annual data over the period 1960–89. Among the conclusions are that first, the relationship between inflation and growth is non-uniform across countries: 40% of countries studied reveal no causality, one-third exhibit unidirectional causality and about one-fifth of countries show bidirectional causality, second, a vast majority of countries which show either uni- or bi-directional causality beong to the industrial group, and third, the low world inflation regime will on balance redistribute real growth opportunities benefit away from the developing countries towards the industrialized countries.     

Foreign direct investment,economic freedom and economic growth: International evidence

In this paper, we investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries. Our empirical results, based on the generalized method-of-moment system estimator, reveal that FDI by itself has no direct (positive) effect on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs).     

Nonlinear economic growth: Some theory and cross-country evidence

This paper aims to test the existence of different growth regimes, that is of different relationships between growth rate and income level. We propose a simple nonlinear growth model and test its empirical implications by estimating Markov transition matrices and stochastic kernels. We show that growth is indeed nonlinear: a first phase of slow or zero growth is followed by a take-off and, finally, by a phase of deceleration. We discuss the relevance of these results with respect to the issue of convergence and reversibility of development, in the light of models of structural change and technological diffusion.     

Some political determinants of economic growth: Theory and empirical implications

This work studies the effects of the political environs on economic growth. The theoretical result from a mathematical model suggests that regime instability, political polarization, and government repression all have a negative impact on economic growth. A cross-sectional analysis of 88 countries over the period of 1974–1990 provides preliminary confirmation of three implications derived from the theoretical model.     

Financial development and economic growth in Australia: An empirical analysis

The paper empirically examines the dynamic relationship between financial development and economic growth in Australia in terms of bank-based and market-based financial structure. A time-series approach using the VAR Model is used to provide evidence for the dynamic relationship. The paper provides empirical evidence on the causal impact of the financial market on the economic growth of the Australian economy. The results suggest that financial intermediaries and financial markets have different impacts on economic growth given their diverse roles in the domestic economy. In particular there is evidence of causality from economic growth to the development of the financial intermediaries. On the other hand, development in the financial markets causes economic growth but there is no evidence of any causality from economic growth to financial markets. The sensitivity test using different interest rates does not change the results.I Jel classification: O16, G18, G28I We would like to thank Tilak Abeysinghe and Rajagurn Gunasekaran for their helpful comments on the first draft. Also, we would like to thank the Editor, Prof. Baldev Raj, and two anonymous referees for their helpful comments.First version received: October 2001/Final version received: October 2002     

Monetary aggregates as indicators of economic activity in Canada: empirical evidence

Empirical evidence linking monetary aggregates to variables such as inflation and economic growth has weakened over the past two decades. In this study we re‐examine these relationships by creating composite monetary aggregates that switch among existing monetary aggregates, using quarterly data over the sample 1971–99. Overall, composite monetary aggregates appear to be useful in explaining or forecasting short‐run movements in GDP growth and inflation. Also, the most successful composite monetary aggregates produce switch dates that overlap with the introduction of financial innovations. These subsequently prompted the Bank of Canada to revise or introduce new monetary aggregates. JEL Classification: E51, E52, C52, C53 Les agrégats monétaires en tant qu'indicateurs de l'activitééconomique: résultats empiriques. Les résultats empiriques jaugeant les liens entre les agrégats monétaires et des variables telles que l'inflation et la croissance économique montrent que ces liens se sont affaiblis au cours des deux dernières décennies. Ce mémoire examine ces relations en créant des agrégats monétaires composites qui se déplacent entre les agrégats usuels selon certains critères statistiques. L'étude utilise des données trimestrielles pour la période 1971–99. Dans l'ensemble, les agrégats monétaires composites semblent plus utiles pour expliquer ou prévoir les mouvements à court terme dans le niveau de croissance du PIB et de l'inflation. De plus, les agrégats monétaires composites qui ont le plus de succès suggèrent des moments de déplacement qui correspondent à des discontinuités marquant la mise en place d'innovations financières. Celles‐ci ont entraîné la Banque du Canada à reviser les agrégats monétaires usuels ou à en suggérer de nouveaux.     

The service sector and economic growth: some cross-section evidence

It has often been claimed that a relative expansion of the service sector has a deleterious effect on economic growth. This paper uses cross-section country-level data from three decades –1960s, 1970s and 1980s – to see whether in fact this negative relation is reflected in the data. It is found that the effect is negative or positive depending on how the role of the service sector is measured, but there is a strong case that effect is in fact usually negative.     

Equity and economic growth,a theoretical and empirical study: MENA zone

In macroeconomic literature, it is widely held that persuasion of economic growth and more equitable distribution of income (wealth) is not possible at the same time. The basic reason put forward is that to aim for more equitable distribution will reduce total savings in short and medium terms by reducing the weighted average of propensities to save of the different strata of the society. Therefore, the main objective for countries in transitional period is to have a higher economic growth rather than a fairer distribution of income. Recent developments on economic growth studies from a longer perspective and with sustainability criterion has put above idea in real jeopardy. It is shown that by paying more attention to justifiable distribution especially among different generations will promote a higher genuine savings which results in a higher rate of steady economic growth. In this research we use dynamic optimization approach (optimal control) for studying the mechanics of this regularity and test the proposition for selected MENA zone countries and then compare with some developed countries. Our ultimate goal is suggesting a fair fiscal policy to have a high economic growth compatible with a fairer distribution of wealth and income. It seems that any attempt to provide a more equitable condition, will be eventually reached to a higher capital formation, higher saving and higher output per capita in MENA region compared with selected developed countries.     

Education public financing and economic growth: an endogenous growth model versus evidence

Using an Endogenous Growth Model with physical and human capital and unemployment (Mauro and Carmeci in J Macroecon 25:123–137, 2003), we study the effects of subsidies to education in economic growth. According to the model, we conclude that government subsidies to education only enhance economic growth conditional on unemployment and that this relationship is negatively influenced by unemployment. We provide evidence from a broad panel data of countries that confirms the importance of unemployment in the relationship between subsidies to education and economic growth but dismiss its importance as a direct determinant of economic growth.