Author

  • Abdus Samad

    • Department of Finance and Economics, Utah Valley University, Orem & University of Bahrain
    • United States

Abstract

This paper investigates the causality relationship between economic growth, exports and imports in Algeria using Cointegration, Error Correction Model, and VEC Granger causality/Wald Exogeniety tests. The paper finds that economic growth in Algeria is linked to export industries and import is linked to economic growth. In other words, the growth in export sectors Granger causes economic growth which, in turn, promotes the growth of imports in Algeria. The paper suggests policy prescription that the government of Algeria should put emphasis on promoting growth and development of export industries by ensuring increased productivity in such sector.

Keywords

References

  • Afxentiou, P. C. and Serletis. A. (1991): Exports and GNP causality in the industrial countries: 1950-1985, Kyklos , 44: 67-79.
  • Awokuse, O. (2005): Export led growth and the Japanese economy: Evidence from VAR and acyclic graph, Applied Economic Letters , 12: 849-858.
  • Balassa, B. (1988): The lessons of East Asian development: an overview, Economic Development and Cultural Change, Journal of Development Economics , 36: 273-290.
  • Balassa, B. (1978): Export and economic growth—further evidence, Journal of Development Economics , 5 (2): 181-189.
  • Ben-David, D. and Loewy, M. B. (1998): Free trade growth and Convergence, Journal of Economic Growth , 3: 143-170.
  • Boltho, A. (1992): Was Japanese growth export led?, Oxford Economic papers, 48: 415-432.
  • Buffie, E. (1992): On the condition for export-led growth, Canadian Journal of Economics , 25: 211-225.
  • Giles, J. A. and Williams, C. L. (2000): Export-led growth: a survey of empirical literature and some non- causality results, Part 1, Journal of International Trade and Economic Development, 9: 265- 341.
  • Grabowski, R., Sharma, S. C. and Dhakal, D. (1990): Exports and Japanese economic development, Economic Letters , 32: 127-132.
  • Hatemi, J. A. (2002): Export performance and economic growth nexus in Japan: a bootstrap approach, Japan and World Economy , 14: 25-33.
  • Islam, N. M. (1998): Export expansion and economic growth: testing for cointegration and causality, Applied Economics, 30 (3): 415-425.
  • Johansen, S. (1991): Estimation and Hypothesis testing of Cointegrating vectors in Gaussian Vector Autoregessive Models, Econometrica , 59:1551-1580.
  • Johansen, S. (1995): Likelihood-based Inference in Cointegrated Vector Autoregressive Models, Oxford, Oxford University Press.
  • Kwan, A. and Cotsomitis, C. (1990): Economic growth and expanding export sector: China 1952-1958, International Economic Journal , 5:105-116.
  • Mashi, A. M. M. and Mashi, M. (1994): Temporal Causality Between Money and prices in LDC and the ErrorCorrection Approach: New Evidence from India, Indian Economic Review , 29 (1): 33-55.
  • Miller, S. M. and Russek, F. S. (2001): Co-integretion and Error Correction Models: The Temporal Causality between Government Taxes and Spending, Southern Economic Journal, 57:221-229.
  • Moschos, D. (1989): Export expansion, growth and the level of economic development: an empirical analysis, Journal of Development Economics, 30: 93-102.
  • Shan, J. and Sun, F. (1998). Export-led growth hypothesis for Australia: an empirical re-examination, Applied Economic Letters , 5:423-428.
  • Sharma, S. C., Norris, N. M. and Chung, D. W. (199): Exports and economic growth in industrialized countries, Applied Economics , 23: 697-707.
  • Yamada, H. (1998): A note on the causality between exports and productivity, Economic Letters , 61: 111-114.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Samad, A. (2011). Exploring Exports and Economic Growth Causality in Algeria. Journal of Economics and Behavioral Studies, 2(3), 92-96. https://doi.org/10.22610/jebs.v2i3.226

Share this article

License

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 2 No. 3 (2011) Growth, Infrastructure & Consumer Choice View issue contents

Published

2011-03-15

Submissions

Have research to publish? Journal of Economics and Behavioral Studies welcomes submissions.

Make a Submission