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Title: |
Manufactured Exports, Capital Good Imports,
and Economic Growth: Experience of Mexico and Brazil |
| Author: |
Alam, M. Imam |
| Author
Affiliation: |
U Northern IA |
| Source: |
International Economic Journal, Winter 2003, v. 17, no. 4, pp. 85-105 |
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Publication Date: |
Winter 2003 |
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Abstract: |
This paper
examines the export-led growth hypothesis using data from two Latin
American countries, Mexico and Brazil, in a production function
framework. It addresses some of the limitations of existing methods of
testing the hypothesis. Contrary to popular belief, we do not find any
evidence to support the hypothesis. Imported capital goods appear to be
very significant in the growth process of these two countries. To check
the robustness of the results, this study uses two different
cointegrating procedures to determine the number of cointegrating
vectors, and three different methods to estimate the parameters of the
long-run relations. The results are robust across estimation techniques. |
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