Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

94

Issue

9

Publisher

Utah State University Department of Economics

Publication Date

1994

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

29

Abstract

In this paper we have investigated the causal relationship between exports and growth in a bivariate framework using time-series data on six countries. Hsiao's (1979, 1981) version of the Granger causality test is used to find the direction of causation. Our study improves upon previous work by evaluating the time series properties of GDP and exports and supplementing Granger causality tests with a bivariate cointegration te~t and error-correction model. Our fmdings suggest that the evidence in favor of export-promotion policy is weaker than previous statistical studies have indicated.

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