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This paper aims to examine the export‐led growth hypothesis for Fiji and Papua New Guinea (PNG).

The paper investigates the export‐led growth hypothesis for Fiji and PNG who have been facing dismal economic growth performances over the last couple of decades.

Findings of the study suggest that for Fiji there is evidence of export‐led growth in the long‐run, while for PNG there is evidence of export‐led growth in the short‐run.

The findings of this paper have important messages for policy makers given that export sectors in both countries investigated are underdeveloped due mainly to a sustained period of political instability.

The purpose of this paper is to contribute to the literature on demand-driven Keynesian growth in open economies by developing a formal model that combines Dixon and Thirlwall’s (1975) export-led growth model and Thirlwall’s (1979) balance-of-payments constrained growth model into a more general specification. Then, based on the model developed in this paper, the authors analyse more broadly some important issues concerning the net impact of currency depreciation on the short-run growth.

The authors build upon Dixon and Thirlwall’s (1975) export-led growth model and Thirlwall’s (1979) balance-of-payments constrained growth model in order to develop the theoretical framework. The authors also run numerical simulations to illustrate the net impact of devaluation on the short-run growth rate in different scenarios.

The authors demonstrate that the net impact of currency devaluation on growth can go either way, depending on some structural conditions such as the average share of imported intermediate inputs in prime costs of domestic firms and the institutional capacity of trade unions to set nominal wages through the bargaining process. The model also shows that the effectiveness of a competitive real exchange rate to promote growth is higher in countries where the share of labour in domestic income is also higher.

This paper provides a coherent formal starting-point for further theoretical developments on the interrelatedness between currency devaluation, income distribution and growth. These findings provide empirically testable hypothesis for future research.

The present study proposes an alternative formal solution for the theoretical problem of imposing a balance-of-payments constraint on the process of cumulative causation often incorporated in Kaldorian growth models. In terms of policy, the framework sheds further light on the relevance of income distribution and the labour market institutional framework for the dynamics of the exchange rate pass-through mechanism and allows us to map out related conditions under which currency devaluation can promote growth.

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.

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

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.

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

The purpose of this paper is to examine the influence of institutional quality on the export-led growth (ELG) with global evidence of a panel of 119 countries.

The research framework looks at the role of exports in promoting growth via. good institutional quality. The methods of testing are panel data approach of causality, and fixed and random effects models.

Empirical results show that good Institutional quality mediates the ELG relationship in general, and middle income group in specific. The legal institutional quality has significant positive impact, whereas political and economic institutional quality have significant negative impact on ELG for all sampled countries.

The Kuncic’s (2014) institutional quality data are annually available between 1990 and 2010. Therefore, time series analysis for individual country is bias with 21 observations. And, this study ignores other potential variables such as capital, labor, real exchange rate, and so on, may possibly contribute to omitted-variables bias.

Policymakers may well utilize institutional quality reforms either in terms of improving existing institutional quality or enhancing “second-best” institutions as a policy instrument to reap success from export-oriented growth strategies.

Existing studies on ELG have ignored institutional quality as a relevant variable. It looks at the three institutional quality indicators, namely political, economic, and legal in ELG framework.

The purpose of this paper is to examine how the linkage effect provides a better understanding of export‐led growth hypothesis in developing countries.

The literature review on the externalities of export‐led growth implied a hypothesis that the higher the linkage effect of export manufacture or industry is, the greater the externality effect and the faster the export growth of it will be in developing countries. The export growth pattern of the Hong Kong electronics industry and some selected data from China's export manufactures have been used to verify the hypothesis.

The findings have strongly supported the research hypothesis at both the product and industry level.

In the ELG model, it is the externality and the linkage effect of export that lead to the output growth of an economy. The findings have illustrated that the ELG model cannot simply be based on the effect of the amount of export or the export growth rate, rather the externality and the linkage effect of export should also be incorporated into the model.

The purpose of this paper is to test the export‐led growth hypothesis for South Asia, a diverse region consisting of one large country, India, surrounded by a number of medium and small countries such as Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and Maldives.

To test this, the study employs cointegration and error‐correction modelling, using data from the International Financial Statistics of the IMF.

The study produces fairly mixed results, and does not find any conclusive evidence in favour of export‐led growth. While India, Maldives and Nepal exhibit export‐led growth, Bangladesh and Bhutan show the opposite result of growth‐led exports. In Pakistan and Sri Lanka no causality in either direction was found. The mixed nature of the results is further confirmed by taking a common time period since 1980.

South Asia is one of the poorest regions of the world; so success or otherwise of export‐led growth is of great interest for policy purposes. For example, the finding of export‐led growth for the largest economy of the region, India, is particularly heartening as, by opening up its markets further to the other countries of the region, it can fuel growth in the entire region.

This study tries to fill an important gap in the literature as it is the first comprehensive study of the region as a whole.

The purpose of this paper is to investigate the export‐led growth, growth‐led export, import‐led growth, growth‐led import and foreign deficit sustainability hypothesis in the case of China, using annual time series data from 1978‐2009.

For estimation evidence this study employs the Phillips Perron unit root tests to examine the level of integration and the autoregressive distributed lag (ARDL) approach is employed to determine the long run relationship, and the direction of long run and short run causal relationship is examined by using modified Granger causality test.

The results confirm the bidirectional long run relationship between the economic growth and exports, economic growth and imports, and exports and imports. These findings guided the authors to conclude that the exports‐led growth, growth‐led exports, imports‐led growth and growth‐led imports hypothesis is valid, and foreign deficit is sustainable for China. The long run elasticities are as follows: the elasticity of economic growth with respect to exports is 0.591, and elasticity of exports with respect to economic growth is 1.635. The elasticity of economic growth with respect to imports is 0.621, and elasticity of imports with respect to economic growth is 1.392. Further more the elasticity of exports with respect to imports is 1.322, and imports elasticity with respect to exports is 0.975.

This study utilizes the relative new cointegration method of ARDL approach. The empirical findings of this study are vital for policy makers of China in the formulation of trade policies.

The purpose of this paper is to present the growth trends in IT industry after the period of globalization in 1990s and to investigate the short-run and long-run dynamics between IT software and service exports, globalization and economic growth in India.

Annual time series data on IT exports, net national product and openness index have been collected from National Association of Software and Service Companies, the Reserve Bank of India database on Indian economy and the World Bank for the present study. The methodology adopted for studying the first objective are growth trend models, descriptive statistics and graphs prepared on the basis of data from the IT sector. Growth trends in key performance variables, such as total output, export, domestic output and employment have been analyzed. In the case of second objective, vector auto regression model has been used based on variance decomposition and impulse response function to capture the short-run and long-run dynamics between IT exports, globalization and economic growth in India.

Results of the growth trend model show the relative growth performance of software services receipts shows its strong advancement compared to the other sub-components of current account of balance of payments of India. It is found that economic growth responds positively to the shocks in IT exports and openness of economy. Further, IT software and service exports and openness index contribute to economic growth more in the long-run rather than in the short run.

The IT software and service exports is dynamic field of economic activity amid heavy dependence on both domestic and external economic and political environment; hence, the rate of change is so rapid, and the relevance of factors may change over time.

The paper has implications for achieving sustainability in IT software and service exports growth. It is recommended that economic growth can be enhanced by implementing policies that not only improve the efficiency of the sector but also focus on optimization of the potential of the Indian IT industry.

This paper focuses on originality in delineating the growth trends and analysis of capturing the short-run and long-run dynamics between IT exports, globalization and economic growth in India.

The study aims to examine the export-led growth (ELG) hypothesis for Bangladesh. The direction of causality between export and output largely determines the success of export-oriented trade policies. A unidirectional causality running from export to output growth is required according to the narrow definition, while bidirectional causality is allowed for the broader definition. The study offers the causality inference, both from narrow and broader senses.

The study uses the bootstrap version of Toda and Yamamoto-modified causality tests, a recent development in time series econometrics, robust against the regularity conditions such as stationarity, properties of integration and cointegration and constancy of parameters. It uses monthly secondary data for the period of 1990-2014.

Test results suggest a unidirectional positive causal relationship from exports to output growth, meaning that the policies and strategies supporting exports are promoting output growth and thereby approve the ELG hypothesis for Bangladesh from the narrow sense. However, the absence of bidirectional causality between export and output growth, necessary to support the ELG hypothesis from the broader perspective, discards the conjecture that output growth is reinvigorated through the probable second-round effects of ELG produced from output growth to exports.

Lower investments in infrastructure, technology and education are reasons for the absence of ELG from the broader sense. Therefore, directing returns generated from exports for the development of technology, infrastructure and human capital, with regular and continuous revision of trade-liberalization policies so as to make its exports more competitive in the world market, will help Bangladesh trigger the second-round effect of ELG produced from output growth to exports.

Beyond the conventional approaches, this is the first contemporary time series econometrics causality analysis between export and output growth of Bangladesh, both from narrow and broader senses.

This study aims to examine the relationship between tourism development and economic growth while considering exports simultaneously. Governments in many countries have been developing and deploying strategies to attract tourism receipts as a means for economic growth. However, assessing the potential impact of tourism on economic growth among large economies is still in its infancy.

Using a vector error correction model framework, this study examines the relationship among exports, gross domestic product (GDP) and tourism receipts (including international tourism receipts and domestic tourism receipts in two separate models) with macro data that covers two recent decades (1994-2013) in China.

The empirical findings confirm the existence of a long-term equilibrium relationship in each of these two tri-variate models. The empirical findings reveal that (1) both tourism-led-growth and export-led-growth hypotheses are supported, (2) the growth rate of tourism receipts exhibit a higher relevance with GDP growth than export growth and (3) the growth rate of international tourism shows a higher relevance with GDP growth than domestic tourism growth.

Using macroeconomic data collected by the Chinese government, the current study employs an advanced econometric methodology to explore the potential benefits of tourism on economic growth in China.