Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis

Gulasekaran Rajaguru, Shandre M Thangavelu

Research output: Contribution to conferencePresentationResearch

5 Downloads (Pure)

Abstract

The paper investigates the causal relationship between trade and labour productivity for 10 rapidly developing Asian countries using a Vector Error-Correction Model. In particular, exports and imports are used jointly as trade variables to examine the relationship between trade and productivity. The study found evidence of import-led rather than export-led productivity growth for some of the Asian countries. The long-run result shows that there is no effect from exports to labour productivity growth for Indonesia, Korea, Japan, and Taiwan; thus suggesting that there is no export-led productivity growth in these countries. However, we do find significant effects from imports on productivity growth, suggesting import-led productivity growth in Korea and Japan. The results also show both export and import-led productivity growth for India, Malaysia, Singapore and Thailand. Also, we found evidence of only export-led productivity growth for Hong Kong.
Original languageEnglish
Publication statusPublished - 2000
Externally publishedYes
EventThe Seventh International Convention of the East Asian Economic Association - Pan-Pacific Hotel, Singapore, Singapore, Singapore
Duration: 17 Nov 200018 Nov 2000
Conference number: 7
http://www.eaeaweb.com/3-eaea-conventions.html (EAEA Conventions)

Conference

ConferenceThe Seventh International Convention of the East Asian Economic Association
Abbreviated titleEAEA
CountrySingapore
CitySingapore
Period17/11/0018/11/00
Internet address

Fingerprint

Productivity growth
Asian countries
VAR analysis
Causality
Productivity
Import
Korea
Labour productivity
Japan
Hong Kong
Vector error correction model
Indonesia
Singapore
Thailand
Malaysia
India
Taiwan

Cite this

Rajaguru, G., & Thangavelu, S. M. (2000). Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis. The Seventh International Convention of the East Asian Economic Association, Singapore, Singapore.
Rajaguru, Gulasekaran ; Thangavelu, Shandre M. / Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis. The Seventh International Convention of the East Asian Economic Association, Singapore, Singapore.
@conference{763a3fc942d34789b20a4b746e501cb5,
title = "Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis",
abstract = "The paper investigates the causal relationship between trade and labour productivity for 10 rapidly developing Asian countries using a Vector Error-Correction Model. In particular, exports and imports are used jointly as trade variables to examine the relationship between trade and productivity. The study found evidence of import-led rather than export-led productivity growth for some of the Asian countries. The long-run result shows that there is no effect from exports to labour productivity growth for Indonesia, Korea, Japan, and Taiwan; thus suggesting that there is no export-led productivity growth in these countries. However, we do find significant effects from imports on productivity growth, suggesting import-led productivity growth in Korea and Japan. The results also show both export and import-led productivity growth for India, Malaysia, Singapore and Thailand. Also, we found evidence of only export-led productivity growth for Hong Kong.",
author = "Gulasekaran Rajaguru and Thangavelu, {Shandre M}",
year = "2000",
language = "English",
note = "The Seventh International Convention of the East Asian Economic Association, EAEA ; Conference date: 17-11-2000 Through 18-11-2000",
url = "http://www.eaeaweb.com/3-eaea-conventions.html",

}

Rajaguru, G & Thangavelu, SM 2000, 'Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis' The Seventh International Convention of the East Asian Economic Association, Singapore, Singapore, 17/11/00 - 18/11/00, .

Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis. / Rajaguru, Gulasekaran; Thangavelu, Shandre M.

2000. The Seventh International Convention of the East Asian Economic Association, Singapore, Singapore.

Research output: Contribution to conferencePresentationResearch

TY - CONF

T1 - Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis

AU - Rajaguru, Gulasekaran

AU - Thangavelu, Shandre M

PY - 2000

Y1 - 2000

N2 - The paper investigates the causal relationship between trade and labour productivity for 10 rapidly developing Asian countries using a Vector Error-Correction Model. In particular, exports and imports are used jointly as trade variables to examine the relationship between trade and productivity. The study found evidence of import-led rather than export-led productivity growth for some of the Asian countries. The long-run result shows that there is no effect from exports to labour productivity growth for Indonesia, Korea, Japan, and Taiwan; thus suggesting that there is no export-led productivity growth in these countries. However, we do find significant effects from imports on productivity growth, suggesting import-led productivity growth in Korea and Japan. The results also show both export and import-led productivity growth for India, Malaysia, Singapore and Thailand. Also, we found evidence of only export-led productivity growth for Hong Kong.

AB - The paper investigates the causal relationship between trade and labour productivity for 10 rapidly developing Asian countries using a Vector Error-Correction Model. In particular, exports and imports are used jointly as trade variables to examine the relationship between trade and productivity. The study found evidence of import-led rather than export-led productivity growth for some of the Asian countries. The long-run result shows that there is no effect from exports to labour productivity growth for Indonesia, Korea, Japan, and Taiwan; thus suggesting that there is no export-led productivity growth in these countries. However, we do find significant effects from imports on productivity growth, suggesting import-led productivity growth in Korea and Japan. The results also show both export and import-led productivity growth for India, Malaysia, Singapore and Thailand. Also, we found evidence of only export-led productivity growth for Hong Kong.

M3 - Presentation

ER -

Rajaguru G, Thangavelu SM. Causality Between Trade and Productivity in Rapidly Developing Asian Countries: A Multivariate VAR Analysis. 2000. The Seventh International Convention of the East Asian Economic Association, Singapore, Singapore.