Exports And Economic Growth Theories And Evidence From Eastern And Southern Africa

Most of the previous empirical studies that tested• the link between exports 'andrneconomic growth focused on cross country regression analysis. This approach, however,rnsuffers from an over simplified assumption of uniform production functions across Countriesrnwhich obscure intercountry differences; these studies use period averages which arernmisleading if the time series are non-stationary and it is difficult to associate the resultsrnobtained with any particular country in the group. In trying to deal with these weaknessesrnthis study has employed individual country time series data to test the relationship betweenrnexports and GDP growth as well as to establish the direction of causality between them. Ourrntime series results reveal a positive and significant association between exports and growthrnin four out of the seven countries investigated, and in three of these countries causality hasrnbeen found to run form exports to growth.

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