A new causality test for the analysis of the export-growth nexus

Furuoka, Fumitaka (2018): A new causality test for the analysis of the export-growth nexus.

Abstract

This paper proposes a new causality test or a Fisher-type causality test to examine empirically the export-growth nexus. To empirically demonstrate this new causality test procedure, the Fisher causality test is used to examine the exports-growth nexus in four Asian economies, namely Indonesia, Philippines, Hong Kong and Japan. The new causality test could detected a complex situation in the export-growth nexus in Asia. The Fisher causality test clearly pointed out that there are unidirectional causality from economic growth to exports in Indonesia, bidirectional causality between exports and economic growth in Philippines, no causality relationship between exports and economic growth in Hong Kong and Japan.

• Item Type: MPRA Paper
• Language: English
• Keywords: Exports, economic growth, causality test, Asia
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies

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