Journal of Policy Modeling 27 (2005) 929–940 The export-output growth nexus: Evidence from African and Asian countries Panayiotis A. Reppas, Dimitris K. Christopoulos ∗ Department of Economic and Regional Development, Panteion University, Leof. Syngrou 136, 17671 Athens, Greece Received 11 November 2004; received in revised form 13 January 2005; accepted 22 June 2005 Available online 8 August 2005 Abstract This study investigates the relationship between exports and output growth for a sample of 22 less developed Asian and African countries over the period 1969–1999. Our study goes beyond previous studies by using modern time series techniques organized around panel unit roots and panel cointegration tests to draw sharper conclusions from the short time series that are typically available in economics. In addition, the structural relationship between output growth and exports is estimated by fully modified OLS techniques appropriate for heterogeneous panel. The empirical findings suggest that output growth causes exports and not the reverse. © 2005 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved. JEL classification: C22; C23; F43; O11 Keywords: Exports; Growth; Panel unit roots; Panel cointegration 1. Introduction The macroeconomic relationship between exports and economic growth has been one of the most widely investigated in the development literature. Virtually all analysis of this relationship has been based on the premise that it is export activity that leads to economic ∗ Corresponding author. Tel.: +30 210 9224948; fax: +30 210 9229312. E-mail address: christod@panteion.gr (D.K. Christopoulos). 0161-8938/$ – see front matter © 2005 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved. doi:10.1016/j.jpolmod.2005.06.007