Nexus of Asean-5 trade and economic growth
This study aims to estimate the robustness of the relationship between aggregate exports, imports and Gross Domestic Product (GDP) per capita in the ASEAN - 5 economy for 30 years starting from 1974 to ye ar 2003. Proliferation of economic integration, particularly...
| Main Author: | |
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| Format: | Final Year Project Report / IMRAD |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, UNIMAS
2007
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/6465/ http://ir.unimas.my/id/eprint/6465/1/Roy%20Albert%20ft.pdf |
| Summary: | This study aims to estimate the robustness of the relationship between aggregate
exports, imports and Gross Domestic Product (GDP) per capita in the ASEAN
-
5
economy for 30 years starting from 1974 to ye
ar 2003. Proliferation of economic
integration, particularly with additional new trading partner like China starting from
1997, will largely determine the scale of nexus between ASEAN
-
5 trade and economic
growth performances. 4 types of methods applied in
this study which includes
Augmented Dickey Fuller (ADF) Unit Root test, Johansen and Juselius Cointegration
Test, pairwise Granger Causality as well as Vector Error Correction (VEC) Estimates.
The ADF Unit Root test implies that all data are stationary in
their first difference.
Through the execution of Cointegration test, results reported the existent of at most one
single cointegrating vector in the long run period. Based on the Granger Causality test,
the results suggested in the case of short run, unidi
rectional causality from GDP per
capita to aggregate exports and imports existed. Besides, by harnessing Vector Error
Correction Estimates in this study, significant positive nexus were found among
prevailing variables, thus revealing that trade in ASEAN
-
5
have positive impacts on
profoundness of GDP per capita both in the short run and long run timeframe. |
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