Testing the export-growth hypothesis: Some parametric and non-paramentric results for Ghana

To test the export-growth hypothesis for Ghana, 4 parametric causality models (the Granger model, the Sims model, the modified Sims model, and the Akaike Final Prediction Error model) and the non-parametric multiple rank F-test model of Holmes and Hutton are estimated for a variety of variable speci...

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Bibliographic Details
Published in:Applied economics 1993-04, Vol.25 (4), p.553
Main Authors: Gordon, Daniel V, Sakyi-Bekoe, Kwabena
Format: Article
Language:English
Subjects:
Business growth
Causality
Economic models
Economic theory
Exports
Hypotheses
Online Access:Get full text
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Summary:To test the export-growth hypothesis for Ghana, 4 parametric causality models (the Granger model, the Sims model, the modified Sims model, and the Akaike Final Prediction Error model) and the non-parametric multiple rank F-test model of Holmes and Hutton are estimated for a variety of variable specifications and lag structures. Consistent with other published research, causality conclusions are sensitive to the different causality tests used, to the lag specification of the variables and to the structure of the error terms. The interesting contribution of this research is in comparing results derived from parametric and non-parametric models and in showing that violation of the normality assumption leads the Granger model to the apparently incorrect conclusion that gross domestic product causes exports.
ISSN:0003-6846
1466-4283