International trade and income in Malawi: a co-integration and causality approach

This paper investigates causal relationships between exports, imports, and economic growth in Malawi over the period 1961-2010. These relationships are examined using the Johansen frameworks for co-integration whereas the Vector Error Correction (VECM) framework is further used to provide estimates...

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Main Authors: Matchaya, Greenwell C., Chilonda, Pius, Nhelengethwa, Sibusiso
Format: Journal Article
Language:Inglés
Published: 2013
Subjects:
Online Access:https://hdl.handle.net/10568/40217
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author Matchaya, Greenwell C.
Chilonda, Pius
Nhelengethwa, Sibusiso
author_browse Chilonda, Pius
Matchaya, Greenwell C.
Nhelengethwa, Sibusiso
author_facet Matchaya, Greenwell C.
Chilonda, Pius
Nhelengethwa, Sibusiso
author_sort Matchaya, Greenwell C.
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper investigates causal relationships between exports, imports, and economic growth in Malawi over the period 1961-2010. These relationships are examined using the Johansen frameworks for co-integration whereas the Vector Error Correction (VECM) framework is further used to provide estimates for both short-run and long-run dynamics in the series under study. The empirical results, including the impulse responses support the export-led economic growth and export driven imports hypotheses in the long run, but they provide no evidence of any economic growth-driven exports. These results strongly support the role of international trade in Malawi's economic development and hence policies that seek to facilitate Malawi's trade within and outside the SADC regional would be worthwhile to pursue.
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spelling CGSpace402172023-06-12T15:35:00Z International trade and income in Malawi: a co-integration and causality approach Matchaya, Greenwell C. Chilonda, Pius Nhelengethwa, Sibusiso international trade income exports imports economic growth models This paper investigates causal relationships between exports, imports, and economic growth in Malawi over the period 1961-2010. These relationships are examined using the Johansen frameworks for co-integration whereas the Vector Error Correction (VECM) framework is further used to provide estimates for both short-run and long-run dynamics in the series under study. The empirical results, including the impulse responses support the export-led economic growth and export driven imports hypotheses in the long run, but they provide no evidence of any economic growth-driven exports. These results strongly support the role of international trade in Malawi's economic development and hence policies that seek to facilitate Malawi's trade within and outside the SADC regional would be worthwhile to pursue. 2013 2014-06-13T14:47:11Z 2014-06-13T14:47:11Z Journal Article https://hdl.handle.net/10568/40217 en Open Access Matchaya, Greenwell Collins; Chilonda, Pius; Nhelengethwa, Sibusiso. 2013. International trade and income in Malawi: a co-integration and causality approach. International Journal of Economic Sciences and Applied Research, 6(2):125-147.
spellingShingle international trade
income
exports
imports
economic growth
models
Matchaya, Greenwell C.
Chilonda, Pius
Nhelengethwa, Sibusiso
International trade and income in Malawi: a co-integration and causality approach
title International trade and income in Malawi: a co-integration and causality approach
title_full International trade and income in Malawi: a co-integration and causality approach
title_fullStr International trade and income in Malawi: a co-integration and causality approach
title_full_unstemmed International trade and income in Malawi: a co-integration and causality approach
title_short International trade and income in Malawi: a co-integration and causality approach
title_sort international trade and income in malawi a co integration and causality approach
topic international trade
income
exports
imports
economic growth
models
url https://hdl.handle.net/10568/40217
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AT nhelengethwasibusiso internationaltradeandincomeinmalawiacointegrationandcausalityapproach