Although conventional wisdom suggests that export growth contributes positively to economic growth, empirical studies on the causal links between exports and output have provided little support for the exported growth hypothesis. The paper reexamines the direction of causation by handling...

Economic theory suggests that export growth promotes economic growth. Yet empirical research has not found clear support for the export-led growth hypothesis, even for the newly industrialized economies where the theory should be most applicable. This paper provides an explanation for the...

A VAR approach is used to analyze the effects of export growth on the evolution of GDP, domestic employment, and investment in 39 economies. The results strongly support the export-led growth hypothesis. Export growth affects GDP growth positively in 30 countries. In six countries, all of them...

This paper develops a two-country dynamic general equilibrium model with endogenous growth to analyze the effects of international trade on steady-state growth. The two countries differ both in preferences and in technologies. It is shown first that both countries cannot simultaneously...