Export Led Growth in Hong Kong: Empirical Evidence From The Components of Exports

Using Granger s causality approach, the hypothesis of export led growth for Hong Kong has been empirically tested via the components oftotal exports namely re-exports, domestic exports, and export of services. This paper contributes to the existing literature by the following ways. Firstly, this study extend s Tuan and Ng s (1998) work by considering the role of export of services. Secondly, better estimates ofusing larger sample size are granted due to the use ofquarterly data. Thirdly, this study employ s Autoregressive Distributed Lag (ARDL) framework which incorporates both static and dynamic components in order to examine the causation relation between exports components and economic growth . The export led growth hypothesis is supported by the finding ofbi-directional causation between re-exports and real GDP, and domestic exports and real GDP.No causation relation between export of service s and real GDP