EXPORTS AND ECONOMIC-GROWTH IN INDUSTRIALIZED COUNTRIES

The prima-facie causal relationships between growth, exports and factor inputs (capital and labour) are investigated in five industrialized countries (Germany, Italy, Japan, United Kingdom and United States) over the period 1960-87 by analysing a four-variable vector autoregressiye (VAR) model for each country. Our results indicate that Germany and Japan experienced export-led growth. Reverse causality between exports and growth is found in the case of the US and UK, while no causal relationship between exports and output is found for Italy. © 1991, Taylor & Francis Group, LLC. All rights reserved.