Exports and economic growth: Cointegration and causality evidence for Cote d'Ivoire

This paper examines the short- and long-run relationship between economic growth, exports, real investments and labour force for Cote d'Ivoire for the period 1961-97, using cointegration and error correction techniques. The results indicate that there is one long-run equilibrium relationship among the four variables, and the causal relationship flows from the growth in exports to the growth in GDP both in the short and long run, providing support for the export-led growth hypothesis. This finding suggests that the recent trade reforms aimed at promoting domestic investment and restoring international competitiveness to expand and diversify exports have the potential of increasing economic growth in the future.