Econometric Analysis of the Export-led Growth Hypothesis: Evidence for BIMP-EAGA Countries

This paper employs several econometric methods to test the validity of the "export-led growth" hypothesis in three BIMP-EAGA countries, i.e., the Philippines, Indonesia, and Malaysia. Firstly, the study uses Johansen cointegration test and Granger causality test to examine the relationship between export and gross domestic product (GDP) in each of these countries. Secondly, panel unit root test and panel cointegration test are used to examine the relationship between the variables in these three BIMP-EAGA countries as a whole. The econometric tests of the individual countries indicate that there has been no significant relationship between the size of national income and the amount of export in each of these countries. The panel data analysis produces a similar result.