CAUSAL RELATIONSHIP BETWEEN EXPORTS AND ECONOMIC-GROWTH - SOME EMPIRICAL-EVIDENCE IN TAIWAN, JAPAN AND THE UNITED-STATES

Causal relationships between exports and economic growth are tested for Taiwan, the US and Japan. The variables are stationarized. The method of Hsiao (1979) is employed in finding the direction of causation. Wald and likelihood ratio tests confirm that exports growth causes economic growth in Taiwan, economic growth causes exports growth in the US, and a feedback causal relationship exists in Japan. Only terms of trade causes economic growth in Japan.