Does the Export-Led Growth Hypothesis Hold for Services Exports in Emerging Economies?

Authors

  • Okpeku Lilian ONOSE Nile University of Nigeria
  • Osman Nuri ARAS Nile University of Nigeria

DOI:

https://doi.org/10.17015/ejbe.2021.027.04

Keywords:

Exports, Economic Growth, Export-Led Growth, Services Exports, Emerging Economies

Abstract

The export-led growth hypothesis states a positive relationship between the growth of exports and long-run economic growth. This study examines the validity of the export-led growth hypothesis of services exports in 5 emerging economies, including Brazil, India, Nigeria, China, and South Africa (BINCS), for the period of 1980-2019. The study employs the panel mean group autoregressive distributed lag (ARDL) procedure to identify a causal relationship between services exports and gross domestic product (GDP) per capita. The findings show that the export-led growth hypothesis in services only has a positive effect on economic growth in the short run while other variables, including foreign direct investment (FDI), gross capital formation, and labour, increase economic growth in the long run. Hence, the emerging countries should focus more on internal investment to boost growth in the long and short run.

Published

31-05-2021

How to Cite

ONOSE, O. L. ., & ARAS, O. N. (2021). Does the Export-Led Growth Hypothesis Hold for Services Exports in Emerging Economies?. Eurasian Journal of Business and Economics, 14(27), 63-75. https://doi.org/10.17015/ejbe.2021.027.04

Issue

Section

Articles