Title: A dynamic causality test of exports and economic growth in Zimbabwe

Authors: Kunofiwa Tsaurai; Nicholas M. Odhiambo

Addresses: Department of Finance, Risk Management and Banking, University of South Africa, P.O. Box 392, UNISA, 0003, Pretoria, South Africa ' Department of Economics, University of South Africa, P.O. Box 392, UNISA, 0003, Pretoria, South Africa

Abstract: In this paper, we examine the causal relationship between export growth and economic growth. The causal relationship between exports and economic growth has been a subject of extensive debate in recent years. There are currently three dominant views regarding the relationship between exports and economic growth. The first view maintains that it is the growth of exports that drives economic growth. The second view argues that it is economic growth that spurs exports expansion; while the third view maintains that both exports and economic growth promote one another. Using the autoregressive distributed lag (ARDL)-bounds testing approach, we find that there is a distinct causal flow from export growth to economic growth in Zimbabwe - both in the short run and in the long run. We therefore recommend that policies, which are geared towards export promotion should be intensified, in order to promote long-term economic growth in Zimbabwe.

Keywords: Zimbabwe; exports; economic growth; ARDL-bounds testing; causality test; export growth.

DOI: 10.1504/IJEPEE.2012.051364

International Journal of Economic Policy in Emerging Economies, 2012 Vol.5 No.3, pp.231 - 242

Received: 28 Jun 2012
Accepted: 06 Sep 2012

Published online: 15 Nov 2014 *

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