Export and growth in ASEAN: does export destination matter?

Abstract

Purpose

The association between export destinations and economic growth remains under-researched, despite the large literature on export-led growth. This paper aims to fill in the gap of the literature. It analyzes the effects of exporting on economic growth in the Association of Southeast Asian Nations (ASEAN) and further explores which export destinations are most desirable in terms of promoting economic growth.

Design/methodology/approach

With panel data for ASEAN countries from 1986 to 2013, this paper performs both fixed effects estimation and Arellano–Bond GMM estimation.

Findings

Robust findings reveal that to promote economic growth, it is most beneficial for ASEAN countries to export to the Western industrial countries, followed by exporting to Japan, Korea and China. Exporting to the rest of the world does not appear to generate significantly positive effect on economic growth.

Originality/value

The findings have important policy implications for ASEANs to further develop their trade policy.

Citation

Pan, M. and Nguyen, H. (2018), "Export and growth in ASEAN: does export destination matter?", Journal of Chinese Economic and Foreign Trade Studies, Vol. 11 No. 2, pp. 122-131. https://doi.org/10.1108/JCEFTS-07-2017-0021