Tang, Chor Foon and Lai, Yew Wah (2011): The Stability of Exportled Growth Hypothesis: Evidence from Asia's Four Little Dragons.
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Abstract
The objective of this study is to reinvestigate the exportled growth hypothesis for Asia’s Four Little Dragons using cointegration and rolling causality analyses. Employing both bivariate (exports and GDP) and trivariate (exports, GDP and exchange rate) models, the study finds that exports and GDP are cointegrated for all the four economies, implying that there is a long run relationship between the variables. However, the MWALD causality test results differ between the bivariate and trivariate models. The exportled growth hypothesis is valid only for the case of Hong Kong and Singapore in the bivariate model but valid for all four economies in the trivariate model. Furthermore, the rolling regressionbased MWALD test shows that exportled growth in each of the four economies is not stable over their respective period of analysis.
Item Type:  MPRA Paper 

Original Title:  The Stability of Exportled Growth Hypothesis: Evidence from Asia's Four Little Dragons 
Language:  English 
Keywords:  Asia’s Four Little Dragons; Exportled growth; Rolling MWALD test 
Subjects:  O  Economic Development, Technological Change, and Growth > O1  Economic Development > O11  Macroeconomic Analyses of Economic Development C  Mathematical and Quantitative Methods > C2  Single Equation Models; Single Variables > C22  TimeSeries Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models F  International Economics > F4  Macroeconomic Aspects of International Trade and Finance > F43  Economic Growth of Open Economies 
Item ID:  27962 
Depositing User:  Chor Foon Tang 
Date Deposited:  08. Jan 2011 07:03 
Last Modified:  15. Feb 2013 07:51 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/27962 
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