Bi-directional Relationships between Exports and Growth: A Panel Data Approach
Dr. Amit Kundu
Journal of Economics and Development Studies, 1(1), pp. 10-23.

Abstract
This paper uses panel data analysis to test the validity of the “export-led hypothesis” in seven countries, members of SAARC (India, Bangladesh, Sri lanka, Pakistan, Nepal, Bhutan and Maldives). Fixed effects model leads to conclusion that there is no significant relationship between GDP and Export for these countries. On the other hand Random effects model leads to conclusion that there is no significant relationship between GDP and Export for these countries. Panel unit root tests imply that there is strong evidence of stationary process for both GDP and Export at level that is I(0). However, the panel cointegration test indicates there is co-integrating relationship between export and growth for these countries. As a conclusion, the export could be seen as the engine of growth in these countries. In other word, the empirical findings did provide sufficient evident to support the : export-led hypothesis” in the area.

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Kundu, Dr. Amit. (2013). Bi-directional Relationships between Exports and Growth: A Panel Data Approach. Journal of Economics and Development Studies, 1(1), pp. 10-23.