EXPORT COMPOSITION AND THE IMPACT OF EXPORTS ON ECONOMIC-GROWTH OF DEVELOPING-ECONOMIES

Employing an augmented production-function framework, a number of studies have found that export growth exerts a positive impact on GDP growth in less developed countries (LDCs), even when capital and labor are controlled for. Using a similar framework but recognizing the possible heterogeneity of exports, the present paper finds, for the 1960-1980 period, that while the primary export sector exhibits little or no effect on GDP growth in LCDs, there is a differential positive impact by the manufacturing export sector. © 1990.