On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide
Objective: The purpose of the present study is to revisit the export-led growth hypothesis in the wake of globalization. This will help in trade policy decisions and make it possible to standpoint whether the export promotion is a good idea to accelerate economic growth. Design: The ELG hypothes...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Seisense
2022-01-01
|
| Series: | SEISENSE Journal of Management |
| Subjects: | |
| Online Access: | https://journal.seisense.com/jom/article/view/733 |
| _version_ | 1827076885874475008 |
|---|---|
| author | Suraj Sharma |
| author_facet | Suraj Sharma |
| author_sort | Suraj Sharma |
| collection | DOAJ |
| description |
Objective: The purpose of the present study is to revisit the export-led growth hypothesis in the wake of globalization. This will help in trade policy decisions and make it possible to standpoint whether the export promotion is a good idea to accelerate economic growth.
Design: The ELG hypothesis is examined for 107 countries through panel data analysis using cointegration and panel regression tests from 1990 to 2018. The study finds strong support for the long-run relationship between exports and gross domestic product and the export-led growth hypothesis in a two-variable regression framework.
Findings: It is evident from the long-run coefficient of dynamic ordinary least squared that a 1.0 percent increase in real exports increases the real gross domestic product by 0.53 percent. The long-run coefficient of real exports for the Global South (0.55) is found higher than that of the Global North (0.51), which indicates that in the wave of globalization, the evidence of export-led growth hypothesis is stronger for comparatively poor Global South than the richer Global North.
Practical Implications: The results indicate implications for export promotion policy in the Global South countries to accelerate economic growth and increase real gross domestic product.
Originality: The study is the first to explore the ELG hypothesis using a big pool of 107 countries, including the global north-south divide.
|
| first_indexed | 2024-03-07T14:04:56Z |
| format | Article |
| id | doaj.art-629106aa26c3485883d0be07de3ce391 |
| institution | Directory Open Access Journal |
| issn | 2617-5770 |
| language | English |
| last_indexed | 2025-03-20T02:05:00Z |
| publishDate | 2022-01-01 |
| publisher | Seisense |
| record_format | Article |
| series | SEISENSE Journal of Management |
| spelling | doaj.art-629106aa26c3485883d0be07de3ce3912024-10-03T09:20:27ZengSeisenseSEISENSE Journal of Management2617-57702022-01-015110.33215/sjom.v5i1.733On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South DivideSuraj Sharma0Department of Economics, S.M. College, Chandausi (M.J.P. Rohilkhand University, Bareilly, Uttar Pradesh, India) Objective: The purpose of the present study is to revisit the export-led growth hypothesis in the wake of globalization. This will help in trade policy decisions and make it possible to standpoint whether the export promotion is a good idea to accelerate economic growth. Design: The ELG hypothesis is examined for 107 countries through panel data analysis using cointegration and panel regression tests from 1990 to 2018. The study finds strong support for the long-run relationship between exports and gross domestic product and the export-led growth hypothesis in a two-variable regression framework. Findings: It is evident from the long-run coefficient of dynamic ordinary least squared that a 1.0 percent increase in real exports increases the real gross domestic product by 0.53 percent. The long-run coefficient of real exports for the Global South (0.55) is found higher than that of the Global North (0.51), which indicates that in the wave of globalization, the evidence of export-led growth hypothesis is stronger for comparatively poor Global South than the richer Global North. Practical Implications: The results indicate implications for export promotion policy in the Global South countries to accelerate economic growth and increase real gross domestic product. Originality: The study is the first to explore the ELG hypothesis using a big pool of 107 countries, including the global north-south divide. https://journal.seisense.com/jom/article/view/733Export-led growthpanel cointegrationFM-OLSDOLS |
| spellingShingle | Suraj Sharma On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide SEISENSE Journal of Management Export-led growth panel cointegration FM-OLS DOLS |
| title | On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide |
| title_full | On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide |
| title_fullStr | On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide |
| title_full_unstemmed | On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide |
| title_short | On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide |
| title_sort | on exports and economic growth revisiting export led growth hypothesis including north south divide |
| topic | Export-led growth panel cointegration FM-OLS DOLS |
| url | https://journal.seisense.com/jom/article/view/733 |
| work_keys_str_mv | AT surajsharma onexportsandeconomicgrowthrevisitingexportledgrowthhypothesisincludingnorthsouthdivide |