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Title: Bilateral Trade and Economic Growth: The Empirical Evidence Between U.S. and South Korea
Authors: Kang, Hyunsoo
Kennedy, P. Lynn
Authors (Email): Kang, Hyunsoo (
Keywords: export-led growth
bilateral trade
Granger causality
South Korea
United States
Issue Date: 2009-06-21
Abstract: This paper analyzes the relationships between bilateral trade and economic growth in the U.S. and Korean economies. Using quarterly data from 1990 to 2008, the theoretical procedures utilize Ordinary Least Square (OLS) and Seemingly Unrelated Regression (SUR) models under the static model assumption, an Impulse Response Function (IRF) and Forecast Error Variation Decomposition (FEVD) under the Vector Autoregressive (VAR) model, and Granger causality tests. Empirical results indicate a causal relationship between bilateral export growth and economic growth for the U.S. and Korean economies. The export-led growth (ELG) hypothesis is strongly supported by the results of Granger causality tests on Korean exports.
Identifiers: ISSN 1229-8263
Institution/Association: Journal of Rural Development/Nongchon-Gyeongje>Volume 32, Issue 2, June 2009
Total Pages: 30
From Page: 59
To Page: 88
Collections:Volume 32, Issue 2, June 2009

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