Export – Economic Growth Nexus in the World Regions: Directions of Public Policy

Abstract

This paper has examined a long-run causal nexus between export and economic growth in six regions of the world. For this purpose, the authors have applied the Granger causality test. Using annual data for the period of 1971 – 2018, the authors have tested the direction of the causality between the variables. The research has found unidirectional causality running from export to economic growth in Asia, Europe, North America and Oceania. Moreover, the research has noticed the absence of the Granger causality in Africa and Latin America & the Caribbean. The findings could be useful in implementing regional policy. In Asia, Europe, North America and Oceania policy makers should aware of the importance of trade and focus on implementing export-oriented policies to stimulate economic development.