Export-Led growth hypothesis: Evidence from Cote d’Ivoire

N'GUESSAN BI ZAMBE, SERGE CONSTANT (2010): Export-Led growth hypothesis: Evidence from Cote d’Ivoire.

Abstract

This paper re-examine the export-led growth hypothesis for Cote d’Ivoire using the Bounds test analysis: unrestricted error correction model (UECM) for the period 1980-2007. Based on the model, exports, labor force and economic liberalization policies have stimulated economic growth, whereas, imports and exchange rate negatively impacted on economic growth. The results indicate that there exists a long-term relationship between economic growth and its determinants in our model. In addition, the VAR Granger/Block-exogeneity Wald tests reveal an evidence of bi-directional causality between exports and economic growth. Thus findings have important messages for policy makers given that export sector dominance in Cote d’Ivoire economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cote d’Ivoire, Economy growth, Cointegration, Causality test, Exports.
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa; F - International Economics > F2 - International Factor Movements and International Business > F20 - General; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies

References

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