| Author(s) | Khalifa H. Ghali |
| Affiliation | Department (!f'Economics. College ()f'Business and Economics. United Arab Emirates University, P.O. Box 17555, Al Ain The United Arab Emirates |
| Title | Export Growth and Economic Growth: The Tunisian Experience |
| Source | Journal of King Saud University. Administrative Sciences. Volume 12, No 2. (2000/1420) |
| Abstract | This paper attempts to test the export-led-growth theory using Tunisian data. The dynamic interaction between export growth and economic growth is modeled within a vector-error-correction model using the Johansen technique of co-integration and the Granger test of causality. The analysis shows that the level of output and exports share a common stochastic trend that is consistent with Granger-causality running in both directions between economic growth and export growth. In particular causality is found to be the result of the variables adjusting to their long-run equilibrium relationship. Given the robustness of the results, the Tunisian experience shows support for the export-led growth theory and, thus, the paper recommends that Tunisian policymakers should consider export-promotion an engine to economic growth. |
