Economic growth, export and external debt causality: the case of African countries

Empirical investigation of the export-driven economic growth hypothesis has provided mixed results in a bivariate causality framework. The problem with such bivariate causality analysis is that there can be an omitted variable which could adversely affect the results. This paper looks at the trivari...

Full description

Saved in:
Bibliographic Details
Published in:Applied economics 1996-01, Vol.28 (1), p.21-27
Main Authors: Amoateng, Kofi, Amoako-Adu, Ben
Format: Article
Language:English
Subjects:
Africa
Analysis
Applied economics
Causality
Debt management
Economic growth
Economic models
Economics
Exports
External debt
Structural adjustment
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Empirical investigation of the export-driven economic growth hypothesis has provided mixed results in a bivariate causality framework. The problem with such bivariate causality analysis is that there can be an omitted variable which could adversely affect the results. This paper looks at the trivariate causality analysis of African countries by introducing external deby servicing as a third variable in the export-economic growth analysis. The results indicate that there is a feedback or bidirectional causality between external debt servicing, economic growth and exports. Evidence of the 1983-90 subperiod is consistent with the argument that the structural adjustment programmes which were designed to remove economic distortions, promote exports and encourage external debt management, increased growth in the countries involved.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036849600000003