Exports and Economic Growth: Theories and Evidence from Eastern and Southern Africa
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Date
1998-06
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A.A.U
Abstract
Most of the previous empirical studies that tested• the link between exports 'and
economic growth focused on cross country regression analysis. This approach, however,
suffers from an over simplified assumption of uniform production functions across Countries
which obscure intercountry differences; these studies use period averages which are
misleading if the time series are non-stationary and it is difficult to associate the results
obtained with any particular country in the group. In trying to deal with these weaknesses
this study has employed individual country time series data to test the relationship between
exports and GDP growth as well as to establish the direction of causality between them. Our
time series results reveal a positive and significant association between exports and growth
in four out of the seven countries investigated, and in three of these countries causality has
been found to run form exports to growth.
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Keywords
Exports and Economic Growth, Eastern and Southern Africa