Page 528 - 2016 - Vol. 40

Anwerand Sampath (1997) utilized unit root and co-
integration techniques and Granger causality, for the period
of (1960-1992) and have found that out of 96 countries
only 8 showed unidirectional or bidirectional causality
from exports to GDP with positive relationship between the
two variables. According to the evidence of the study,
causality from GDP to exports with positive relationship
between the two variables has been found for only 8
countries.

Ekanayake (1999) used co-integration and error-
correction models to analyze the causal relationship
between export growth and economic growth in eight Asian
developing countries using annual data from (1960-1997).
This study has provided strong evidence supporting the
export-led growth hypothesis. The empirical results in
Ekanayake's research showed that bi-directional causality
exists between export growth and economic growth in
India, Indonesia, Korea, Pakistan, Philippines, Sri Lanka
and Thailand. According to this study, there is also
evidence for export-led growth in Malaysia. Furthermore,
there is evidence for short-run Granger causality running
from economic growth to export growth in all cases except
Sri Lanka. However, there is no strong evidence for short-

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