Export and growth in ASEAN: does export destination matter?

Publication Date04 June 2018
DOIhttps://doi.org/10.1108/JCEFTS-07-2017-0021
Pages122-131
AuthorMingming Pan,Hien Nguyen
SubjectEconomics,International economics
Export and growth in ASEAN:
does export destination matter?
Mingming Pan
Department of Economics, Wright State University, Dayton, Ohio, USA, and
Hien Nguyen
Department of Economics, New Mexico State University,
Las Cruces, New Mexico, USA
Abstract
Purpose The association between export destinations and economic growth remains under-researched,
despite the large literature on export-led growth. This paper aims to ll in the gap of the literature. It analyzes
the effects of exporting on economic growth in the Association of Southeast Asian Nations (ASEAN) and
further explores which export destinations are most desirable in terms of promoting economic growth.
Design/methodology/approach With panel data for ASEAN countries from 1986 to 2013, this paper
performs both xed effects estimation and Arellano–Bond GMM estimation.
Findings Robust ndings reveal that to promote economic growth, it is most benecial for ASEAN
countries to export to the Western industrial countries, followed by exporting to Japan, Korea and China.
Exporting to the rest of the world does not appear to generate signicantly positive effect on economic
growth.
Originality/value The ndings have important policy implications for ASEANs to further develop their
trade policy.
Keywords ASEAN, Economic growth, Export, Export destination
Paper type Research paper
1. Introduction
The association between export destinations and economic growth remains under-
researched, despite the large literature on export-led growth (Xu, 1998; Pereira and Xu, 2000;
Atesoglu and Vilasuso, 1999; Chuang, 2000). Baliamoune-Lutz (2011) points out that a
country’s exports matters for its growth and development. Our paper attempts to ll this
gap in the literature. We analyze the effects of exporting on economic growth in the
countries of the Association of Southeast Asian Nations (ASEAN) and further explore which
export destinations are most favorable in terms of promoting economic growth.
ASEAN has evolved from an organization that was primarily concerned about regional
security to one that is more focused on economic development. In this evolution ASEAN has
adopted the generally accepted view that exporting and international trade promise to help
promote development and growth. One important goal of ASEAN is to accelerate economic
growth. Evidence from this study should be useful in guiding further evolution of ASEAN’s
trade policy.
JEL classication – F14, O19, O47
The authors are indebted to Richard Adkisson for his input on previous versions of the paper. All
remaining errors are the authors’.
JCEFTS
11,2
122
Journal of Chinese Economic and
Foreign Trade Studies
Vol. 11 No. 2, 2018
pp. 122-131
© Emerald Publishing Limited
1754-4408
DOI 10.1108/JCEFTS-07-2017-0021
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1754-4408.htm

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