Abstract
This study examines the export-growth linkages for selected Asian developingcountries for the period of 1975-2008. To test the causal relationship between exportsand growth, this study employs panel unit root tests (IPS, LLC and Hadri), Larsson etal. (2001) likelihood-based panel co-integration technique, FMOLS by Pedroni (2001)and Hurlin and Venet (2001) panel causality test. The result of panel co-integrationrank test confirms the existence of unique co integration relation between economicgrowth and exports in selected Asian developing countries. The estimated results ofFMOLS shows that during a long period of time to export more, higher growth isrequired. The results based on panel homogenous causality hypothesis shows thesignificant effect of economic growth on export in selected panel. While the results onpanel non-homogenous causality hypothesis show the existence of bi-directionalcausality between economic growth and exports. However, the empirical results onheterogeneous causality hypothesis show that the causality is found running fromeconomic growth to exports in case of Pakistan, Sri Lanka and Indonesia and fromexports to economic growth in Malaysia and Thailand. Bidirectional causality alsoexists in case of India, Sri Lanka and Indonesia while neutral hypothesis is found incase of Bangladesh.