EXPORT-LED GROWTH EVIDENCE IN DEVELOPING ASEAN4 COUNTRIES

This paper validate the evidence of Export-Led-Growth Hypothesis through a modified Cobb Douglas production model towards the selected developing of Association of South East Asia (ASEAN) countries namely Malaysia, Indonesia, Philippines and Thailand. This paper formulates a dynamic econometric models for real gross domestic product (GDP), export (X), import (M), capital (CP), labor (LL) and exchange rates (EXR) besides employing recent time-series econometric techniques known as Bound test or ARDL approach. The findings reveal that Export-Led-Growth Hypothesis contributing highly significant role in has contributed growth to all countries tested in the long run. Nevertheless, the evidence of the importance for capital and labor was varried for the countries tested. Besides the estimated coefficient for variables used in this paper such as exchange rate (EXR), Asian Financial Crisis 1997-1998 (DUM1) and Global Recession 2007-2008 (DUM2) also differ across the tested countries.