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Articles

Export-led growth: the case of the Slovenian and Estonian economies

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Pages 373-383 | Received 21 May 2015, Accepted 05 Aug 2015, Published online: 10 Jun 2016
 

Abstract

The export-led growth hypothesis is investigated in the case of the two small, open and export-oriented Slovenian and Estonian economies. The Johansen cointegration test and Granger causality test were applied to investigate the relationship between the time series variables for export, import and gross domestic product (GDP). The results reveal evidence to support the export-led growth hypothesis in both economies. The Granger causality relationship is found between export growth and economic (GDP) growth for both countries. Slovenia and Estonia can enhance economic growth by providing a better enabling environment for exporters and by market expansion.

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