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A causality analysis of growth and export performance

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Abstract

This study examines both bivariate causal relationships between manufactured export performance and manufactured output growth and trivariate causal relationships between manufactured exports, investment, and manufactured output. Before the causality testing, integration and cointegration processes are tested in order to select the appropriate functional form. The causality testing process employs the vector autoregression (VAR) approach. Little evidence is found in the bivariate causal results and mixed evidence of causal relationships is found in the trivariate testing results.

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Pomponio, X.Z. A causality analysis of growth and export performance. Atlantic Economic Journal 24, 168–176 (1996). https://doi.org/10.1007/BF02299007

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