Does Trade Matter for Economic Growth? Empirical Evidence from the Scandinavian Countries
(2013) EKHR92 20131Department of Economic History
- Abstract
- The debate about the link between economic growth and foreign
trade is still open amongst scholars. There exist four main hypotheses
regarding the relation between imports, exports and economic growth. The
first one states that growth can come only through increasing the volume of
exports of the country, i.e. export – led – growth hypothesis. The second one
(growth – led – exports hypothesis) suggests that growth is an endogenous
process and only after reaching certain level of development, the country
should start exporting. The last two hypotheses are the import – led – growth
and the growth – led – imports hypothesis. The former states that an increase
in imports, for example highly technological goods can bring... (More) - The debate about the link between economic growth and foreign
trade is still open amongst scholars. There exist four main hypotheses
regarding the relation between imports, exports and economic growth. The
first one states that growth can come only through increasing the volume of
exports of the country, i.e. export – led – growth hypothesis. The second one
(growth – led – exports hypothesis) suggests that growth is an endogenous
process and only after reaching certain level of development, the country
should start exporting. The last two hypotheses are the import – led – growth
and the growth – led – imports hypothesis. The former states that an increase
in imports, for example highly technological goods can bring economic growth
through knowledge spillovers and increased productivity. The latter argues that
imports increase due to achieved economic advance.
This paper examines whether the economic growth in Denmark, Norway and
Sweden follows any of the four hypotheses for the time between 1980 and
2007. This research shows relationship between growth and trade volumes for
Sweden and Denmark and provides contradicting results for Norway. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4058485
- author
- Borisova, Desislava LU
- supervisor
- organization
- course
- EKHR92 20131
- year
- 2013
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- economic growth, exports, Imports, VAR model, Granger causality
- language
- English
- id
- 4058485
- date added to LUP
- 2013-11-13 09:52:14
- date last changed
- 2013-11-13 09:52:14
@misc{4058485, abstract = {{The debate about the link between economic growth and foreign trade is still open amongst scholars. There exist four main hypotheses regarding the relation between imports, exports and economic growth. The first one states that growth can come only through increasing the volume of exports of the country, i.e. export – led – growth hypothesis. The second one (growth – led – exports hypothesis) suggests that growth is an endogenous process and only after reaching certain level of development, the country should start exporting. The last two hypotheses are the import – led – growth and the growth – led – imports hypothesis. The former states that an increase in imports, for example highly technological goods can bring economic growth through knowledge spillovers and increased productivity. The latter argues that imports increase due to achieved economic advance. This paper examines whether the economic growth in Denmark, Norway and Sweden follows any of the four hypotheses for the time between 1980 and 2007. This research shows relationship between growth and trade volumes for Sweden and Denmark and provides contradicting results for Norway.}}, author = {{Borisova, Desislava}}, language = {{eng}}, note = {{Student Paper}}, title = {{Does Trade Matter for Economic Growth? Empirical Evidence from the Scandinavian Countries}}, year = {{2013}}, }