Export is perceived to be an important factor of economic growth in numerous countries irrespective of their economic status whether they are developing or developed. Economic growth is also regarded as a determinant of export in various countries. These two issues have attracted researchers to investigate the bidirectional relationship between export and economic growth. However, most of them found a unidirectional relationship. Therefore, this study attempts to prove the existence of a bidirectional relationships between export and economic growth in Malaysia. Annual data on export, GDP, employment and fixed capital formation were collected and analysed from 1984 to 2014. The Vector Autoregressive Model (VAR) was employed and the findings show that there is a bidirectional relationship between export and economic growth in Malaysia. Therefore, a rise in export can boost economic growth and vice versa.
Abbas, S., (2012). Causality between Exports and Economic Growth: Investigating Suitable Trade Policy for Pakistan. Eurasian Journal of Business and Economics, 5 (10), 91-98.
Acaravci, A., & Ozturk, I., (2012). Foreign Direct Investment, Export and Economic Growth: Empirical Evidence from New EU Countries. Romanian Journal of Economic Forecasting, 2, 52-67
Ali, A., Hakim, R. A., & Abdullah, H. (2017). Relationship between Government Spending on Education and Economic Growth of Pakistan. Asian Journal of Multidisciplinary Studies. 5 (2). 1-10
Chemeda, F.E., (2001). The Role of Exports in Economic Growth with Reference to Ethiopian Country. The Conference on Annual Meeting of the American Agricultural Economics Association in Chicago (August 2-8, 2001).
Cortés-Jiménez, I., Pulina, M., Prunera, C.R.,& Artis, M. (2009). Tourism and Exports as a Means of Growth. Research Institute of Applied Economics 2009. Working Papers 2009/10, 28 pages
Dao, M.Q., (2014). Exports, Imports, Government Consumption and Economic Growth in Upper-Middle Income Countries. Progress in Development Studies, 14 (2). 197–204
Dilek, T., & Aytaç, G. (2009). Foreign Direct Investment and Export in Turkey: The Period of 1991-2008. Anadolu International Conference in Economics, 17-19
Dizaji, M. & Badri, A.K., (2014). The Effect of Exports on Employment in Iran’s Economy. Merit Research Journal of Art, Social Science and Humanities, 2(6). 081-088
Elbeydi K.R.M, Hamuda, A.M., & Gazda, V., (2010). The Relationship between Export and Economic Growth in Libya Arab Jamahiriya. Theoretical and Applied Economics, 1(542). 69-76
John E.I., (2016). Effect of Foreign Direct Investment on Economic Growth in Nigeria. European Business & Management, 2(2), 40-46
Konya, L, (2004). Export-Led Growth, Growth-Driven Export, Both or None? Granger Causality Analysis on OECD Countries. Applied Econometrics and International Development. AEEADE. 4(1). 73-94.
Lee, C., & Huang, B., (2002). The Relationship between Exports and Economic Growth in East Asian Countries: A Multivariate Threshold Autoregressive Approach. Journal of Economic Development, 27(2). 46-68
Lee, J.W. & Brahmasrene, T. (2013). Investigating the Influence of Tourism on Economic Growth and Carbon Emissions: Evidence from Panel Analysis of the European Union. Tourism Management, 38, 69-76
Pablo-Romero, M.P., & Molina, J.A. (2013). Tourism and Economic Growth: A Review of Empirical Literature. Tourism Management Perspectives, 8, 28–41
Ramos, F.F.R., (2001). Exports, Imports, and Economic Growth in Portugal: Evidence from Causality and Cointegration Analysis. Economic Modelling, 18(2001). 613-623
Saaed, A.A.J., and Hussain, M.A., (2015). Impact of Exports and Imports on Economic Growth: Evidence from Tunisia. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 6(1):13-21
Salmani, B., Panahi, H., & Razzaghi, S. (2014). Assessing the Dynamic Economic Impact of Tourism for OIC Members. World Applied Sciences Journal, 32(6), 1098–1105
Seddighi, H. R., Lawler, K. A. & Katos, A. V. (2000). Econometrics: A Practical Approach. Routledge; New York
Shafiullah, M., Selvanathan, S., & Naranpanawa, A., (2017). The Role of Export Composition in Export-Led Growth in Australia and Its Regions. Economic Analysis and Policy, 53 (2017) 62–76
Shihab, R.A., Soufan, T., & Abdul-Khaliq, S., (2014). The Causal Relationship between Exports and Economic Growth in Jordan. International Journal of Business and Social Science, 5(3). 302-308.
Sunde, T. (2017). Foreign Direct Investment, Exports and Economic Growth: ADRL and Causality Analysis for South Africa. Research in International Business and Finance. 41(2017), 432-444
Abdullah, D. N. C., Shaari, M. S., & Hussain, N. E. (2017). Investigating the Causal Relationship between Export and Economic Growth: A Malaysian Perspective. International Journal of Academic Research in Business and Social Sciences, 7(7), 531-540.
Copyright: © 2017 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode