Imports and Economic Growth in the U.K.: Are They Related?

Document Type

Article

Department or Administrative Unit

Economics

Publication Date

2005

Abstract

This paper analyzes the relationship between imports and economic growth in the U.K. The investigation uses annual data ranging from 1948 to 2002 to analyze both the short and the long run relationship between imports and economic growth Johansen's (1988) cointegration testing technique is used to investigate the long run relationship between these two variables while the short run analysis of the data is conducted within vector error correction (VEC) testing framework. The test results indicate that imports and economic growth (measured by real GDP) are related in the long run. VEC test results convey important information about the short run relationship between imports and economic growth. Contrary to the conventional economic view, there is no empirical evidence of a negative impact of imports on economic growth in the UK At the same time, there is empirical evidence indicating a positive impact of economic growth on imports during the period under investigation.

Comments

This article was originally published in Journal of International Business and Economics.

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Journal

Journal of International Business and Economics

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