Research Article
BibTex RIS Cite

Export Diversification and Economic Growth: Evidence From Emerging Economies

Year 2020, Issue: 55, 285 - 298, 27.04.2020

Muhammed Benli

https://doi.org/10.18070/erciyesiibd.609237
Cited By: 7

Abstract

Although export expansion is considered to be an important component of development strategies, how and what type of exports contributes to economic growth has been still an open question. As a matter of fact, the export promotion also does not necessarily lead to economic growth. Revealing the true effect requires considering not only macroeconomic conditions and market structure of exporting countries but also what products and services these countries export. In this context, this paper not only investigates the long run relationship between economic growth, export diversification and domestic investment using panel cointegration techniques but also examines the causal relationship between these variables employing the causality test of Konyá (2006) in 19 emerging economies for the period 1995 - 2017. Panel cointegration test results do not provide evidence of a long run relationship between the variables while Konyá's (2006) causality test reveals various results for different countries.

Keywords

Export Diversification Panel Causality Panel Cointegration

References

  • Aditya, A. and Roy, S. S. (2007). Export diversification and economic growth: Evidence from cross-country analysis (pp. 1-25). Mimeo.
  • Agosin, M. R. (2007). Export diversification and growth in emerging economies. Santiago, Chile, University of Chile.
  • Al-Marhubi, F. (2000). Export diversification and growth: an empirical investigation. Applied economics letters, 7(9), 559-562.
  • Arip, M. A., Yee, L. S. and Abdul Karim, B. (2010). Export diversification and economic growth in Malaysia.
  • Bleaney, M. and Greenaway, D. (2001). The impact of terms of trade and real exchange rate volatility on investment and growth in sub-Saharan Africa. Journal of development Economics, 65(2), 491-500.
  • Breusch, T. S. and Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The review of economic studies, 47(1), 239-253.
  • Cadot, O., Carrère, C. and Strauss-Kahn, V. (2011). Export diversification: what's behind the hump?. Review of Economics and Statistics, 93(2), 590-605.
  • Dawe, D. (1996). A new look at the effects of export instability on investment and growth. World Development, 24(12), 1905-1914.
  • Feenstra, R. and Kee, H. L. (2004). Export variety and country productivity. The World Bank.
  • Feenstra, R. and Kee, H. L. (2008). Export variety and country productivity: Estimating the monopolistic competition model with endogenous productivity. Journal of international Economics, 74(2), 500-518.
  • Ferreira, G. F. and Harrison, R. W. (2012). From Coffee Beans to Microchips: export diversification and economic growth in Costa Rica. Journal of Agricultural and Applied Economics, 44(4), 517-531.
  • Funke, M. and Ruhwedel, R. (2001). Export variety and export performance: empirical evidence from East Asia. Journal of Asian Economics, 12(4), 493-505.
  • Greenaway, D., Morgan, W., and Wright, P. (1999). Exports, export composition and growth. Journal of International Trade & Economic Development, 8(1), 41-51.
  • Grossman, G. M. and Helpman, E. (1991). Quality ladders in the theory of growth. The review of economic studies, 58(1), 43-61.
  • Haddad, M., Lim, J. J., Pancaro, C. and Saborowski, C. (2013). Trade openness reduces growth volatility when countries are well diversified. Canadian Journal of Economics/Revue canadienne d'économique, 46(2), 765-790.
  • Hamed, K., Hadi, D. and Hossein, K. (2014). Export diversification and economic growth in some selected developing countries. African Journal of Business Management, 8(17), 700-704.
  • Herzer, D. and Nowak-Lehmann, D. (2006). Export diversification, externalities and growth: Evidence for Chile.
  • Hesse, H. (2009). Export diversification and economic growth. Breaking into new markets: emerging lessons for export diversification, 55-80.
  • Imbs, J. and Wacziarg, R. (2003). Stages of diversification. American Economic Review, 93(1), 63-86.
  • Kónya, L. (2006). Exports and growth: Granger causality analysis on OECD countries with a panel data approach. Economic Modelling, 23(6), 978-992.
  • Krugman, P. R. (1979). Increasing returns, monopolistic competition, and international trade. Journal of international Economics, 9(4), 469-479.
  • Love, J. (1986). Commodity concentration and export earnings instability: A shift from cross-section to time series analysis. Journal of Development Economics, 24(2), 239-248.
  • Michaely, M. (1977). Exports and growth: an empirical investigation. Journal of development economics, 4(1), 49-53.
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels.
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312.
  • Pesaran, M. H. and Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of econometrics, 142(1), 50-93.
  • Pesaran, M. H., Ullah, A. and Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127.
  • Volpe Martincus, C. (2010). Odyssey in international markets: an assessment of the effectiveness of export promotion in Latin America and the Caribbean.
  • Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and statistics, 69(6), 709-748.
  • Westerlund, J. (2008). Panel cointegration tests of the Fisher effect. Journal of Applied Econometrics, 23(2), 193-233.

İhracat Çeşitliliği ve Ekonomik Büyüme: Yükselen Piyasa Ekonomileri Deneyimi

Year 2020, Issue: 55, 285 - 298, 27.04.2020

Muhammed Benli

https://doi.org/10.18070/erciyesiibd.609237
Cited By: 7

Abstract

İhracat hacminin artması kalkınma stratejilerinin önemli bileşenlerinden birisi olmakla birlikte, ihracatın nasıl ve hangi türde ihracatın iktisadi büyümeye katkıda bulunduğu sıkça tartışılan bir konudur. Nitekim ihracat artışı mutlak surette ekonomik büyümeyi sağlamayabilirç İhracatın büyüme üzerindeki gerçek etkisinin ortaya konulması ekonomilerin içinde bulunduğu makroekonomik koşulların ve piyasa yapısının göz önünde bulundurulmasını gerektirdiği gibi, ihracatçı ülkelerin hangi mal ve hizmetleri ihraç ettikleri de bu manada önem arz etmektedir. Bu kapsamda, bu çalışmanın amacı 19 yükselen piyasa ekonomisinde 1995-2017 dönemi için ekonomik büyüme, ihracat çeşitliliği ve yurtiçi yatırımlar arasındaki uzun dönemli ilişkiyi panel eşbütünleşme testleri yardımıyla incelemek ve bahsi geçen değişkenler arasındaki nedensellik ilişkisini ise Konyá (2006) testini kullanarak ortaya koymaktır. Değişkenler arasında uzun dönemli bir ilişkinin varlığına işaret eden yeterli ampirik bulguya ulaşılamamakla birlikte, nedensellik testinden elde edilen bulgular ülkelere göre karma sonuçlar ortaya koymaktadır.

Keywords

İhracat Çeşitliliği Panel Nedensellik Panel Eşbütünleşme

References

  • Aditya, A. and Roy, S. S. (2007). Export diversification and economic growth: Evidence from cross-country analysis (pp. 1-25). Mimeo.
  • Agosin, M. R. (2007). Export diversification and growth in emerging economies. Santiago, Chile, University of Chile.
  • Al-Marhubi, F. (2000). Export diversification and growth: an empirical investigation. Applied economics letters, 7(9), 559-562.
  • Arip, M. A., Yee, L. S. and Abdul Karim, B. (2010). Export diversification and economic growth in Malaysia.
  • Bleaney, M. and Greenaway, D. (2001). The impact of terms of trade and real exchange rate volatility on investment and growth in sub-Saharan Africa. Journal of development Economics, 65(2), 491-500.
  • Breusch, T. S. and Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The review of economic studies, 47(1), 239-253.
  • Cadot, O., Carrère, C. and Strauss-Kahn, V. (2011). Export diversification: what's behind the hump?. Review of Economics and Statistics, 93(2), 590-605.
  • Dawe, D. (1996). A new look at the effects of export instability on investment and growth. World Development, 24(12), 1905-1914.
  • Feenstra, R. and Kee, H. L. (2004). Export variety and country productivity. The World Bank.
  • Feenstra, R. and Kee, H. L. (2008). Export variety and country productivity: Estimating the monopolistic competition model with endogenous productivity. Journal of international Economics, 74(2), 500-518.
  • Ferreira, G. F. and Harrison, R. W. (2012). From Coffee Beans to Microchips: export diversification and economic growth in Costa Rica. Journal of Agricultural and Applied Economics, 44(4), 517-531.
  • Funke, M. and Ruhwedel, R. (2001). Export variety and export performance: empirical evidence from East Asia. Journal of Asian Economics, 12(4), 493-505.
  • Greenaway, D., Morgan, W., and Wright, P. (1999). Exports, export composition and growth. Journal of International Trade & Economic Development, 8(1), 41-51.
  • Grossman, G. M. and Helpman, E. (1991). Quality ladders in the theory of growth. The review of economic studies, 58(1), 43-61.
  • Haddad, M., Lim, J. J., Pancaro, C. and Saborowski, C. (2013). Trade openness reduces growth volatility when countries are well diversified. Canadian Journal of Economics/Revue canadienne d'économique, 46(2), 765-790.
  • Hamed, K., Hadi, D. and Hossein, K. (2014). Export diversification and economic growth in some selected developing countries. African Journal of Business Management, 8(17), 700-704.
  • Herzer, D. and Nowak-Lehmann, D. (2006). Export diversification, externalities and growth: Evidence for Chile.
  • Hesse, H. (2009). Export diversification and economic growth. Breaking into new markets: emerging lessons for export diversification, 55-80.
  • Imbs, J. and Wacziarg, R. (2003). Stages of diversification. American Economic Review, 93(1), 63-86.
  • Kónya, L. (2006). Exports and growth: Granger causality analysis on OECD countries with a panel data approach. Economic Modelling, 23(6), 978-992.
  • Krugman, P. R. (1979). Increasing returns, monopolistic competition, and international trade. Journal of international Economics, 9(4), 469-479.
  • Love, J. (1986). Commodity concentration and export earnings instability: A shift from cross-section to time series analysis. Journal of Development Economics, 24(2), 239-248.
  • Michaely, M. (1977). Exports and growth: an empirical investigation. Journal of development economics, 4(1), 49-53.
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels.
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312.
  • Pesaran, M. H. and Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of econometrics, 142(1), 50-93.
  • Pesaran, M. H., Ullah, A. and Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127.
  • Volpe Martincus, C. (2010). Odyssey in international markets: an assessment of the effectiveness of export promotion in Latin America and the Caribbean.
  • Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and statistics, 69(6), 709-748.
  • Westerlund, J. (2008). Panel cointegration tests of the Fisher effect. Journal of Applied Econometrics, 23(2), 193-233.
There are 30 citations in total.

Details

Primary Language English
Journal Section Makaleler
Authors

Muhammed Benli 0000-0001-6486-8739

Publication Date April 27, 2020
Acceptance Date February 25, 2020
Published in Issue Year 2020 Issue: 55

Cite

APA Benli, M. (2020). Export Diversification and Economic Growth: Evidence From Emerging Economies. Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi(55), 285-298. https://doi.org/10.18070/erciyesiibd.609237

Cited By

The Impact of Export Diversification on Economic Growth by Provinces in Türkiye
Trends in Business and Economics
https://doi.org/10.16951/trendbusecon.1513359
THE PHENOMENON OF EXPORT DIVERSIFICATION IN EXPORT SUCCESS AND TURKIYE CASE
Yönetim ve Ekonomi Araştırmaları Dergisi
https://doi.org/10.11611/yead.1469476
D-8 Ülkelerinde İhracat Çeşitliliği, Ekonomik Büyüme ve Ekolojik Ayak İzi İlişkisi: Ampirik Bir Analiz
Iğdır Üniversitesi Sosyal Bilimler Dergisi
https://doi.org/10.54600/igdirsosbilder.1493966
Trade Horizons: A Comprehensive Study of Determinants Shaping Export Diversification in Pakistan
Bulletin of Business and Economics (BBE)
https://doi.org/10.61506/01.00053
İhracatta Ürün Çeşitliliği ve Türkiye’nin Büyüme Performansı
Dumlupınar Üniversitesi Sosyal Bilimler Dergisi
https://doi.org/10.51290/dpusbe.786102
Export diversification and economic growth: A review and future research agenda
Journal of Public Affairs
https://doi.org/10.1002/pa.2524
İhracatta Ürün Çeşitlendirme ve Yoğunlaşma Analizi: Rusya Örneği (2001-2020)
Kırklareli Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
https://doi.org/10.53306/klujfeas.1057837
 Download Cover Image

Ethical Principles and Ethical Guidelines

The Journal of Erciyes University Faculty of Economics and Administrative Sciences places great emphasis on publication ethics, which serve as a foundation for the impartial and reputable advancement of scientific knowledge. In this context, the journal adopts a publishing approach aligned with the ethical standards set by the Committee on Publication Ethics (COPE) and is committed to preventing potential malpractice. The following ethical responsibilities, established based on COPE’s principles, are expected to be upheld by all stakeholders involved in the publication process (authors, readers and researchers, publishers, reviewers, and editors).

Ethical Responsibilities of Editors
Make decisions on submissions based on the quality and originality of the work, its alignment with the journal's aims and scope, and the reviewers’ evaluations, regardless of the authors' religion, language, race, ethnicity, political views, or gender.
Respond to information requests from readers, authors, and reviewers regarding the publication and evaluation processes.
Conduct all processes without compromising ethical standards and intellectual property rights.
Support freedom of thought and protect human and animal rights.
Ensure the peer review process adheres to the principle of double-blind peer review.
Take full responsibility for accepting, rejecting, or requesting changes to a manuscript and ensure that conflicts of interest among stakeholders do not influence these decisions.
Ethical Responsibilities of Authors
Submitted works must be original. When utilizing other works, proper and complete citations and/or references must be provided.
A manuscript must not be under review by another journal simultaneously.
Individuals who have not contributed to the experimental design, implementation, data analysis, or interpretation should not be listed as authors.
If requested during the review process, datasets used in the manuscript must be provided to the editorial board.
If a significant error or mistake is discovered in the manuscript, the journal’s editorial office must be notified.
For studies requiring ethical committee approval, the relevant document must be submitted to the journal. Details regarding the ethical approval (name of the ethics committee, approval document number, and date) must be included in the manuscript.
Changes to authorship (e.g., adding or removing authors, altering the order of authors) cannot be proposed after the review process has commenced.
Ethical Responsibilities of Reviewers
Accept review assignments only in areas where they have sufficient expertise.
Agree to review manuscripts in a timely and unbiased manner.
Ensure confidentiality of the reviewed manuscript and not disclose any information about it, during or after the review process, beyond what is already published.
Refrain from using information obtained during the review process for personal or third-party benefit.
Notify the journal editor if plagiarism or other ethical violations are suspected in the manuscript.
Conduct reviews objectively and avoid conflicts of interest. If a conflict exists, the reviewer should decline the review.
Use polite and constructive language during the review process and avoid personal comments.
Publication Policy
The Journal of Erciyes University Faculty of Economics and Administrative Sciences is a free, open-access, peer-reviewed academic journal that has been in publication since 1981. The journal welcomes submissions in Turkish and English within the fields of economics, business administration, public finance, political science, public administration, and international relations.

No submission or publication fees are charged by the journal.
Every submitted manuscript undergoes a double-blind peer review process and similarity/plagiarism checks via iThenticate.
Submissions must be original and not previously published, accepted for publication, or under review elsewhere.
Articles published in the journal can be cited under the Open Access Policy and Creative Commons license, provided proper attribution is given.
The journal is published three times a year, in April, August, and December. It includes original, high-quality, and scientifically supported research articles and reviews in its listed fields. Academic studies unrelated to these disciplines or their theoretical and empirical foundations are not accepted. The journal's languages are Turkish and English.

Submissions are first subject to a preliminary review for format and content. Manuscripts not meeting the journal's standards are rejected by the editorial board. Manuscripts deemed suitable proceed to the peer review stage.

Each submission is sent to at least two expert reviewers. If both reviews are favorable, the article is approved for publication. In cases where one review is positive and the other negative, the editorial board decides based on the reviews or may send the manuscript to a third reviewer.

Articles published in the journal are open access and can be cited under the Creative Commons license, provided proper attribution is made.