Is the Export-Led Growth Hypothesis Valid for Sri Lanka? A Time-Series Analysis of Export-Led Growth hypothesis

Abstract

This study examines the validity of the export-led growth hypothesis (ELG) for Sri Lanka using annual data over the period 1960-2005, employing time-series analysis techniques of cointegration, causality, Vector Auto Regressions (VARs) and Impulse Response Functions (IRFs). This study controls for other macroeconomic variables that might have a significant effect on export-economic growth relationship. The findings do not provide empirical support for the export-led growth hypothesis for Sri Lanka.

DOI: 10.4038/ss.v38i1.1222

Staff Studies Volume 38 Numbers 1& 2 2008 p.75-94