Is There an Export-Growth Nexus in Australia?
MetadataShow full item record
This paper uses two different theoretical models – based on Cobb-Douglas and Feder – to test whether there is an export-growth nexus in Australia. The Cobb-Douglas model is tested for cointegration using the Johansen cointegration test. It is then tested for direction of causality using the Toda-Yamamoto Granger causality test which finds one-way causality to run from exports to non-traded GDP. The Feder model is then estimated using OLS, and exports are found to have a positive impact on GDP. Accordingly, an export-growth nexus in which exports positively affect aggregate income is robustly validated in Australia.
The Empirical Economics Letters
© 2015 Rajshahi University. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Macroeconomics (incl. Monetary and Fiscal Theory)