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In this paper, the authors study the Brazilian growth experience after trade liberalization by testing both the Export Led Growth (ELG) and the Growth Led Exports (GLE) hypotheses through a causality test between exports and Gross Domestic Output (GDP). The paper provides further evidence that after openness both ELG and GLE hypotheses are useful to explain the Brazilian growth experience. In the recent years, there has been much attention devoted to the role of foreign trade as an engine of growth [see Edwards (1993)]. However, the direction of causality between exports and economic growth in Brazil after trade liberalization has not been subjected to empirical tests of this sort.
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