Revisited Export-Led Growth Hypothesis For Selected European Countries: A Panel Hidden Cointegration Approach

This paper examines the export-led growth hypothesis in a panel of selected European countries from 1970 to 2011. For this purpose, a panel hidden cointegration test is used. Initially, cumulative negative and positive changes are constructed for each panel variable. Then the potential panel cointegration is examined. Our empirical results support that there is hidden cointegration in panel, thus we assert that there exists a long-term relationship between economic growth and exports.