Neoclassical economic theory suggests there is a positive relationship between economic growth and growth in exports. An increase in exports leads to an increase in income due to the multiplier effect of production. This paper examines whether the Export-Led Growth (ELG) hypothesis is valid for...

This paper investigates Balassa's export-led growth hypothesis for Greece, Ireland, Mexico, Portugal and Turkey by constructing a vector autoregression (VAR) model. On the basis of the Granger non-causality procedure developed by Toda and Yamamoto (1995), the results show that export and output...