This paper comprehensively tests the export-led growth (ELG) hypothesis for Malaysia for the period 1955 - 90, using cointegration and causality testing based on Hsiao's synthesis of the Granger test and Akaike's minimum final prediction error criterion. The results provide support for the ELG hypothesis; aggregate exports Granger-cause real GDP and non-export GDP. This relationship is found to be driven by manufactured exports rather than by traditional exports.
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Ghatak et al. (1997) studied this question.
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