This study examines the trade-led growth(TLG)hypothesis for the Kingdom of Saudi Arabia.Using time-series annual data for the period 1985-2019,the ARDL approach and Toda-Yamamoto Granger causality test are applied to ...This study examines the trade-led growth(TLG)hypothesis for the Kingdom of Saudi Arabia.Using time-series annual data for the period 1985-2019,the ARDL approach and Toda-Yamamoto Granger causality test are applied to accomplish the study.The ARDL estimation reveals that trade openness positively causes economic growth in both the long and short run,and the TLG hypothesis is found valid for the Kingdom.The Toda-Yamamoto Granger causality test results have evidenced several unidirectional causalities.Of them,trade openness causes economic growth and supports the ARDL finding and hence the TLG hypothesis for the Kingdom.Moreover,trade openness causes gross fixed capital formation,and the labor force stimulates both economic growth and trade volume.The findings recommend that the Kingdom may increase its trade to reap further benefits and enhance its income growth.展开更多
This study examines foreign direct investment(FDI)-growth and trade-growth relationships in Bangladesh during three major crises:the economic crisis of 2007-2008,the commodity crisis of 2016,and the coronavirus(COVID-...This study examines foreign direct investment(FDI)-growth and trade-growth relationships in Bangladesh during three major crises:the economic crisis of 2007-2008,the commodity crisis of 2016,and the coronavirus(COVID-19)pandemic of 2020.The augmented autoregressive distributed lag(AARDL)bounds testing approach and Bayer and Hanck cointegration are employed on time-series data spanning the period 1974-2020.The results suggest that exports have positive effects on economic growth,while imports have insignificant effects in both the short run and long run.Total trade(the sum of exports and imports)has a positive but weakly significant effect on economic growth only in the long run,whereas FDI exhibits a positive effect in both the short run and long run.Although the crises are not found to affect economic growth directly or through trade(i.e.,no dampening effect on trade-led growth),they are found to distort FDI-led growth in both the short run and long run.As robustness tests for long-run elasticities,the fully modified ordinary least squares(FMOLS)and dynamic ordinary least squares(DOLS)cointegration techniques are implemented,yielding results similar to those obtained with the AARDL.展开更多
文摘This study examines the trade-led growth(TLG)hypothesis for the Kingdom of Saudi Arabia.Using time-series annual data for the period 1985-2019,the ARDL approach and Toda-Yamamoto Granger causality test are applied to accomplish the study.The ARDL estimation reveals that trade openness positively causes economic growth in both the long and short run,and the TLG hypothesis is found valid for the Kingdom.The Toda-Yamamoto Granger causality test results have evidenced several unidirectional causalities.Of them,trade openness causes economic growth and supports the ARDL finding and hence the TLG hypothesis for the Kingdom.Moreover,trade openness causes gross fixed capital formation,and the labor force stimulates both economic growth and trade volume.The findings recommend that the Kingdom may increase its trade to reap further benefits and enhance its income growth.
文摘This study examines foreign direct investment(FDI)-growth and trade-growth relationships in Bangladesh during three major crises:the economic crisis of 2007-2008,the commodity crisis of 2016,and the coronavirus(COVID-19)pandemic of 2020.The augmented autoregressive distributed lag(AARDL)bounds testing approach and Bayer and Hanck cointegration are employed on time-series data spanning the period 1974-2020.The results suggest that exports have positive effects on economic growth,while imports have insignificant effects in both the short run and long run.Total trade(the sum of exports and imports)has a positive but weakly significant effect on economic growth only in the long run,whereas FDI exhibits a positive effect in both the short run and long run.Although the crises are not found to affect economic growth directly or through trade(i.e.,no dampening effect on trade-led growth),they are found to distort FDI-led growth in both the short run and long run.As robustness tests for long-run elasticities,the fully modified ordinary least squares(FMOLS)and dynamic ordinary least squares(DOLS)cointegration techniques are implemented,yielding results similar to those obtained with the AARDL.
