This paper questions Balassa’s (1985) finding that the contribution of exports to growth has increased in the post-1973 period as compared to the pre-1973 period. This is because his ‘pre-post’ analysis uses heterogeneous samples. Using a balanced sample from 45 developing countries we find that the contribution of export orientation, although significant, has fallen in the post-1973 period and that presently there is a need to reassess alternative development strategies. The major implication is that results obtained by estimating simple production functions are not very robust because of the sensitivity of the results to the choice of sample and estimation techniques, and strong conclusions should not be drawn from them.
Rana, P.B., 1988. Exports, policy changes, and economic growth in developing countries after the 1973 oil shock: Comment. Journal of Development Economics, 28(2), pp.261-264.
Last updated on 18/06/2018