Does Export Promotion Increase Economic Growth? Some Cross‐Section Evidence

Abstract

This article is concerned with the empirical link between exports and economic growth. Its core objectives are to attempt control for structural features that determine ‘export orientation’ in order to derive an index of export promotion that captures policy effects only, and then to test whether or not this index is a determinant of growth. The empirical work presented casts doubt on the overall validity of the export‐led development hypothesis. The analysis suggests that middle‐income countries that are more export‐oriented grow faster than relatively less export‐oriented economies. For low‐ and high‐income countries, however, export promotion does not have any significant impact on economic growth.

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