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Title: |
Simultaneity in the Study of Exports and Economic Growth |
| Author: |
Lee, Feng-Yao;
Cole, William E. |
| Author
Affiliation: |
U TN |
| Source: |
International Economic Journal, Summer 1994, v. 8, no. 2, pp. 33-41 |
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Publication Date: |
Summer 1994 |
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Abstract: |
A number of empirical studies have
concluded that exports promote economic growth. In each case, a single
equation model was estimated by OLS with the magnitude of the export
growth coefficient being consistently small, albeit significant. The
present study of extensive cross-country data indicates the likelihood
of simultaneous determination of exports and economic growth. The rate
of growth of exports is then treated as an endogenous variable with the
equation estimated by 2SLS in a number of cases in which various
plausible combinations are assumed for the system. The 2SLS results
generally amplify the earlier findings but tend to show that exports
probably play a more important role than was previously indicated. |
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