Imports and Economic Growth in the U.K.: Are They Related?
Department or Administrative Unit
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.
Saunders, P. (2005). Imports and economic growth in the U.K.: Are they related? Journal of International Business and Economics, 3(1).
Journal of International Business and Economics