This study empirically analyses the validity of the Export-Led Growth
(ELG) and Growth-Driven Export (GDE) hypotheses, building two
respective models in the case of Azerbaijan. The analysis is novel for
Azerbaijan since it has yet to be investigated. We apply the Bounds
Testing approach to cointegration based on the ARDL model
constructed on the quarterly data covering 2001Q3–2018Q4. Further
methods, including FMOLS, DOLS, and CCR, are also employed as
robustness checks to draw plausible conclusions. The main finding
regarding these two hypotheses attests to the existence of the
bidirectional (feedback) cointegrating relationship between non-oil
economic growth and non-oil real exports while simultaneously
controlling for the other factors outlined in the paper. We, therefore,
propose our own recommendations for policy-making purposes in line
with the empirical findings obtained herein.
Citation:
Zeynalli, M. (2021). Testing the export-led growth and growth-driven export hypotheses: The case of Azerbaijan. ASERC Journal of Socio-Economic Studies, 4(1), 3-19. DOI:10.30546/2663-7251.2021.4.1.3