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Does Trade Matter for Economic Growth? Empirical Evidence from the Scandinavian Countries

Borisova, Desislava LU (2013) EKHR92 20131
Department 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:
author
Borisova, Desislava LU
supervisor
organization
course
EKHR92 20131
year
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},
  keyword      = {economic growth,exports,Imports,VAR model,Granger causality},
  language     = {eng},
  note         = {Student Paper},
  title        = {Does Trade Matter for Economic Growth? Empirical Evidence from the Scandinavian Countries},
  year         = {2013},
}