Systematic literature review on the relation between export and economic growth

Abstract

Objective: The objective of the article is to determine the current state of scientific production and dominant research trends in the relation between export and economic growth through bibliometric analysis.

Research Design & Methods: The article is a systematic literature review. The research method is based on quantitative and qualitative character. I used Vosviewer to conduct a bibliometric analysis. I conducted the research based on the newest publications from the period 2010 to 2023 from the Scopus database.

Findings: The researchers from the USA constitute the largest group focusing on the relation between ‘economic growth’ and ‘export’. Noteworthy, this topic is gaining increasing popularity across various countries, including China, Saudi Arabia, and Vietnam. Over the years, the increase in the number of publications has been steady. However, the most dynamic increase occurred between 2018 and 2019. The article that scholars appreciated the most discussed the relation between economic growth and export in the broader context. The scholars found a positive relationship between economic growth and variables such as energy use, financial development, capital, exports, imports, and international trade. The findings of the bibliometric analysis show that the relation between export and economic growth occurs in five main topic areas, i.e. 1) regionalization and globalization, 2) international trade, 3) ‘green economy’, 4) macroeconomics indicators and export, 5) export/import, economic growth and FDI. Evidently, over the years, scholars increasingly treated this relation in the context of ‘green economy’ and sustainable development.

Implications & Recommendations: Although the topic is not new and many scholars have analysed it, the systematic literature review with the use of the advanced bibliometric tool (Vosviewer) was missing. Such a review might be useful for adjusting international law and rules to adapt to the latest detected trend. It is especially important in the context of a ‘green economy’ and suitable development. For future research, it is visible that currently, such a systematic review is missing. It seems to be worth analysing the biggest database, e.g. adding the Web of Science or analysis not only articles but also monographies. To analyse the content, I recommend using new tools such as artificial intelligence (AI).

Contribution & Value Added: The article’s added value consists of the updated and synthetic presentation of trends in the topics related to economic growth and export. The article enriched the current state of knowledge by including the latest articles which have been taking into consideration the most recent international trade conditions including the pandemic COVID-19 and Russia’s aggression against Ukraine which influence both the export and economic growth worldwide. It was done thanks to the help of an advanced bibliometric tool (Vosviewer).

Keywords

economic growth, export, bibliometric analysis, systematic literature review, Scopus

Author Biography

Karolina Kulińska

Master of International Economics (2015, Krakow University of Economics, Poland). Her research interests include international competitiveness, international business and international trade relations.

References

1. Ali, G., & Li, Z. (2018). Exports-led growth or growth-led exports in the case of China and Pakistan: An empirical investigation from the ARDL and Granger causality approach. The International Trade Journal, 32(3), 293-314. https://doi.org/10.1080/08853908.2017.1379449
2. Amiti, M., & Weinstein, D.E. (2011). Exports and financial shocks. The Quarterly Journal of Economics, 126(4), 1841-1877. https://doi.org/10.1093/qje/qjr033
3. Ampofo, G.K.M., Cheng, J., Asante, D.A., & Bosah, P. (2020). Total natural resource rents, trade openness and economic growth in the top mineral-rich countries: New evidence from nonlinear and asymmetric analysis. Resources Policy, 68, 101710. https://doi.org/10.1016/j.resourpol.2020.101710
4. Awokuse, T.O. (2003). Is the export‐led growth hypothesis valid for Canada?. Canadian Journal of Economics/Revue Canadienne d’Économique, 36(1), 126-136. https://doi.org/10.1111/1540-5982.00006
5. Balcilar, M., & Ozdemir, Z.A. (2013). The export-output growth nexus in Japan: a bootstrap rolling window approach. Empirical Economics, 44, 639-660. https://doi.org/10.1007/s00181-012-0562-8
6. Banga, K., & Balchin, N. (2023). Linking Southern Africa to South Africa’s exports: New opportunities for regional value chains. The World Economy, 46(2), 346-362. https://doi.org/10.1111/twec.13366
7. Bajo-Rubio, O. (2022). Exports and long-run growth: The case of Spain, 1850-2020. Journal of Applied Economics, 25(1), 1314-1337. https://doi.org/10.1080/15140326.2022.2152562
8. Bazan Navarro, C.E., & Alvarez-Quiroz, V.J. (2022). Foreign Direct Investment and Exports Stimulate Economic Growth? Evidence of Equilibrium Relationship in Peru. Economies, 10(10), 234. https://doi.org/10.3390/economies10100234
9. Berg, A., Ostry, J.D., & Zettelmeyer, J. (2012). What makes growth sustained?. Journal of Development Economics, 98(2), 149-166. https://doi.org/10.1016/j.jdeveco.2011.08.002
10. Bonadio, B., Huo, Z., Levchenko, A., & Pandalai-Nayar, N. (2020). Global supply chains in the pandemic. Working Paper 27224, National Bureau of Economic Research. https://doi.org/10.1016/j.jinteco.2021.103534
11. Brückner, M., & Ciccone, A. (2010). International commodity prices, growth and the outbreak of civil war in Sub‐Saharan Africa. The Economic Journal, 120(544), 519-534. https://doi.org/10.1111/j.1468-0297.2010.02353.x
12. Carballo, J., Handley, K., & Limao, N. (2022). Economic and policy uncertainty: Aggregate export dynamics and the value of agreements. Journal of International Economics, 139, 103661. https://doi.org/10.1016/j.jinteco.2022.103661
13. Chang, C.P., Berdiev, A.N., & Lee, C.C. (2013). Energy exports, globalization and economic growth: The case of South Caucasus. Economic Modelling, 33, 333-346. https://doi.org/10.1016/j.econmod.2013.04.027
14. Christofi, M., Vrontis, D., & Makrides, A. (2022). Exploring the role of institutions in Chinese OFDI: A systematic review and integrative framework. Asia Pacific Business Review, 28(2), 187-213. https://doi.org/10.1080/13602381.2022.2013607
15. Chu, A.C., Peretto, P., & Xu, R. (2023). Export-led take off in a Schumpeterian economy. Journal of International Economics, 145, 103798. https://doi.org/10.1016/j.jinteco.2023.103798
16. de Lucio, J., Mínguez, R., Minondo, A., & Requena, F. (2022). Impact of Covid-19 containment measures on trade. International Review of Economics & Finance, 80, 766-778. https://doi.org/10.1080/10.1016/j.iref.2022.02.051
17. Demir, B., & Javorcik, B. (2020). Trade finance matters: Evidence from the COVID-19 crisis. Oxford Review of Economic Policy, 36(Supplement 1), S397-S408. https://doi.org/10.1093/oxrep/graa034
18. Donthu, N., Kumar, S., Mukherjee, D., Pandey, N., & Lim, W.M. (2021). How to conduct a bibliometric analysis: An overview and guidelines. Journal of Business Research, 133, 285-296. https://doi.org/10.1016/j.jbusres.2021.04.070
19. Dreger, C., & Herzer, D. (2013). A further examination of the export-led growth hypothesis. Empirical Economics. https://doi.org/10.1007/s00181-012-0602-4
20. Duru, I.U., Okafor, B.O., Adikwu, F.O., & Njoku, F.C. (2020). Trade liberalization and economic growth: An assessment of Nigerian experience. Asian Development Policy Review, 8(3), 194-213. https://doi.org/10.18488/journal.107.2020.83.194.213
21. Elyta, A., MZ, J., Mujiono, D.I.K., Islam, R., & Daud, R. (2023). Impacts of the COVID-19 pandemic on export commodity trading. Journal of Governance & Regulation, 12(3), 274-284. https://doi.org/10.22495/jgrv12i3siart9
22. Ekananda, M., & Parlinggoman, D.G. (2017). The role of high-tech exports and foreign direct investments (FDI) on economic growth. European Research Studies Journal, 4(A), 194-212. https://doi.org/10.35808/ersj/828
23. Głodowska, A., & Wach, K. (2022). Entrepreneurship research in Central and Eastern Europe: A systematic literature review and bibliometric analysis. Journal of International Studies, 15(3), 201-214. https://doi.org/10.14254/2071-8330.2022/15-3/14
24. Hagemejer, J., & Muck, J. (2019). Export-led growth and its determinants Evidence from CEEC countries. The World Economy, 42(7), 1994. https://doi.org/10.1111/twec.12790
25. Haini, H., Wei Loon, P., & Raimi, L. (2023). Does export structure enhance the growth gains from foreign investment? Evidence from the ECOWAS region. International Journal of Development Issues. https://doi.org/10.1108/IJDI-12-2022-0282
26. Hartmann, D., Guevara, M.R., Jara-Figueroa, C., Aristarán, M., & Hidalgo, C.A. (2017). Linking economic complexity, institutions, and income inequality. World Development, 93, 75-93. https://doi.org/10.1016/j.worlddev.2016.12.020
27. Huang, B., Huang, H., Xiang, X., & Xu, X. (2023). Dual issue of resources and emissions: Resources richness and Carbon Emissions with Oil rents, trade, and mineral rents exploration. Resources Policy, 86, 104066. https://doi.org/10.1016/j.resourpol.2023.104066
28. Islam, S., Ema, N.S., Chakrobortty, S., Jahan, H., & Hossain, E. (2021). Tea export competitiveness and the nexus between tea export and economic growth. Studies in Agricultural Economics, 123(2), 76-85. https://doi.org/10.7896/j.2125
29. Jarreau, J., & Poncet, S. (2012). Export sophistication and economic growth: Evidence from China. Journal of Development Economics, 97(2), 281-292. https://doi.org/10.1016/j.jdeveco.2011.04.001
30. Kar, M., Nazlıoğgu, Ş., & Agır, H. (2011). Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis. Economic Modelling, 28(1-2), 685-693. https://doi.org/10.1016/j.econmod.2010.05.015
31. Kalaitzi, A.S., & Cleeve, E. (2018). Export-led growth in the UAE: multivariate causality between primary exports, manufactured exports and economic growth. Eurasian Business Review, 8(3), 341-365. https://doi.org/10.1007/s40821-017-0089-1
32. Khan, M.A., Pattnaik, D., Ashraf, R., Ali, I., Kumar, S., & Donthu, N. (2021). Value of special issues in the journal of business research: A bibliometric analysis. Journal of Business Research, 125, 295-313. https://doi.org/10.1016/j.jbusres.2020.12.015
33. Kim, B., Kyophilavong, P., Nozaki, K., & Charoenrat, T. (2022). Does the export-led growth hypothesis hold for Myanmar?. Global Business Review, 23(1), 48-60. https://doi.org/10.1177/0972150919863929
34. Konya, S. (2020). A literature review on the relationship of export and economic growth. International Journal of Social and Humanities Sciences Research, 7(61), 3277-3284. https://doi.org/10.26450/jshsr.2157
35. Liu, W.P., & Chu, Y.C. (2024). FinTech, economic growth, and COVID-19: International evidence. Asia Pacific Management Review. https://doi.org/10.1016/j.apmrv.2023.12.006
36. Lopez-Morales, J.S. (2018). Multilatinas: a systematic literature review. Review of International Business and Strategy, 28(3/4), 331-357. https://doi.org/10.1108/RIBS-05-2018-0041
37. Lora, S.G., Córdova, E.L., & Kuper, J.Z. (2012). Mexican unilateral trade liberalization in the middle of a global economic crisis. Oxford Review of Economic Policy, 28(2), 324-346. https://doi.org/10.1093/oxrep/grs010
38. Meier, M., & Pinto, E. (2020). Covid-19 supply chain disruptions. Covid Economics, (48), 139-170. https://doi.org/10.1016/j.euroecorev.2024.104674
39. Manni, U.H., Siddiqui, S.A., & Afzal, M.N.I. (2012). An empirical investigation on trade openness and economic growth in Bangladesh economy. Asian Social Science, 8(11), 154-159. https://doi.org/10.5539/ass.v8n11p154
40. Manova, K. (2013). Credit constraints, heterogeneous firms, and international trade. Review of Economic Studies, 80(2), 711-744. https://doi.org/10.1093/restud/rds036
41. Marjit, S., & Ray, M. (2017). Export profitability, competition and technology. International Review of Economics & Finance, 47, 35-45. https://doi.org/10.1016/j.iref.2016.10.001
42. Munir, K., & Javed, Z. (2018). Export composition and economic growth: evidence from South Asian countries. South Asian Journal of Business Studies, 7(2), 225-240. https://doi.org/10.1108/SAJBS-10-2017-0117
43. Nouira, R., & Saafi, S. (2022). What drives the relationship between export upgrading and growth? The Role of Human Capital, Institutional Quality, and Economic Development. Journal of Knowledge Economy, 13, 1944-1961. https://doi.org/10.1007/s13132-021-00788-9
44. Odhiambo, N.M. (2022). Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis. European Journal of Management and Business Economics, 31(1), 77-93. https://doi.org/10.1108/EJMBE-06-2020-0156
45. Paul, J., & Criado, A.R. (2020). The art of writing literature review: What do we know and what do we need to know?. International Business Review, 29(4), 101717. https://doi.org/10.1016/j.ibusrev.2020.101717
46. Petryle, V. (2022). COVID-19 pandemic and export: evidence from Lithuania. Organizations and Markets in Emerging Economies, 13(1), 139-162. https://doi.org/10.15388/omee.2022.13.74
47. Ponnusamy, S. (2022). Export specialization, trade liberalization and economic growth: a synthetic control analysis. Empirical Economics, 63(2), 637-669. https://doi.org/10.1007/s00181-021-02149-6
48. Qiao, H., Kang, Y., Yan, J., Zhang, J., Zheng, Z., & Liang, Q. (2023). What role does trade expansion play in the natural resource sustainability of highly resource-consuming countries? Testing Moderating Role of Exports and Innovation. Resources Policy, 82, 103424. https://doi.org/10.1016/j.resourpol.2023.103424
49. Rao, B.B., & Vadlamannati, K.C. (2011). Globalization and growth in the low income African countries with the extreme bounds analysis. Economic Modelling, 28(3), 795-805. https://doi.org/10.1016/j.econmod.2010.10.009
50. Seok, J., & Moon, H. (2021). Agricultural exports and agricultural economic growth in developed countries: evidence from OECD countries. The Journal of International Trade & Economic Development. https://doi.org/10.1080/09638199.2021.1923780
51. Shahbaz, M., Khan, S., & Tahir, M.I. (2013). The dynamic links between energy consumption, economic growth, financial development and trade in China: fresh evidence from multivariate framework analysis. Energy Economics, 40, 8-21. https://doi.org/10.1016/j.eneco.2013.06.006
52. Shahbaz, M., Raghutla, C., Song, M., Zameer, H., & Jiao, Z. (2020). Public-private partnerships investment in energy as new determinant of CO2 emissions: the role of technological innovations in China. Energy Economics, 86, 104664. https://doi.org/10.1016/j.eneco.2020.104664
53. Steinbach, S. (2023). The Russia–Ukraine war and global trade reallocations. Economics Letters, 226, 111075. https://doi.org/10.1016/j.econlet.2023.111075
54. Sultanuzzaman, M.R., Fan, H., Mohamued, E.A., Hossain, M.I., & Islam, M.A. (2019). Effects of export and technology on economic growth: Selected emerging Asian economies. Economic Research-Ekonomska Istraživanja, 32(1), 2515-2531. https://doi.org/10.1080/1331677X.2019.1650656
55. Vidya, C., & Prabheesh, K. (2020). Implications of COVID-19 pandemic on the global trade networks. Emerging Markets Finance and Trade, 56(10), 2408-2421. https://doi.org/10.1080/1540496X.2020.1785426
56. Wach, K. (2020). A Typology of Small Business Growth Modelling: A Critical Literature Review. Entrepreneurial Business and Economics Review, 8(1), 159-184. https://doi.org/10.15678/EBER.2020.080109
57. Yee, C. (2016). Export-led growth hypothesis: empirical evidence from selected sub-saharan african countries. Procedia Economics and Finance, 35, 232-240. https://doi.org/10.1016/S2212-5671(16)00029-0
58. Yilmaz, E., & Sensoy, F. (2022). The relationship between growth and exports: what if the impact is negative? Evidence from Turkey. Journal of Economics Finance and Accounting, 9(3), 104-112. https://doi.org/10.17261/Pressacademia.2022.1619
59. Zaman, M., Pinglu, C., Hussain, S.I., Ullah, A., & Qian, N. (2021). Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries. Heliyon, 7(12), https://doi.org/10.1016/j.heliyon.2021.e08559
60. Zhou, B., & Zhang, Y. (2023). Expansion of financial system and production-based carbon emissions: evidence from high-income countries. Economic Research-Ekonomska Istraživanja, 36(2), 2137825. https://doi.org/10.1080/1331677X.2022.2137825
61. Zhylinska, O., Bazhenova, O., Zatonatska, T., Dluhopolskyi, O.V., Bedianashvili, G., & Chornodid, I. (2020). Innovation processes and economic growth in the context of European integration. Scientific Papers of the University of Pardubice. Series D. Faculty of Economics and Administration, 28(3), https://doi.org/10.46585/sp28031209