Manufacturing exports, mining exports and growth: cointegration and causality analysis for Chile (1960–2001)

Abstract

This study examines the export-led growth hypothesis using annual time series data from Chile in a production function framework. It addresses the problem of specification bias under which previous studies have suffered, and focuses on the impact of manufactured and mining exports on productivity growth. In order to investigate if and how manufactured and mining exports affect economic growth via increases in productivity, the study uses Johansen cointegration technique. The estimation results can be interpreted as evidence of productivity-enhancing effects of manufactured exports and of productivity-limiting effects of mining exports.

Acknowledgement

This research was carried out while the second author visited the German Institute for Economic Research (DIW Berlin). Hospitality and stimulating research environment of the receiving institution is gratefully acknowledged. The earlier version of the article has been presented at the 3rd Nordic Econometrics Meeting in Helsinki, Finland. Standard disclaimer applies.

Notes

¹ For a survey on the evolution of growth and exports in Chile, see, for example, Agosin (1999)

² All computations and graphics have been made with PcGive 10.1 and GiveWin 2.20, see Doornik and Hendry (2001a, b).