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Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries

Year 2023, Volume: 31 Issue: 55, 233 - 252, 31.01.2023

Eser Çapık , Hidayet Gizem Ünlü Ören

https://doi.org/10.17233/sosyoekonomi.2023.01.12
Cited By: 1

Abstract

In this context, the current article examines the impact of the service sector on the economic growth of Azerbaijan, Armenia, and Georgia. In the study in which three separate causality analyses were made, the results of the Toda-Yamamoto causality test in Azerbaijan and Armenia showed no causality between service exports and economic growth, while for Georgia, there was a unidirectional causality from economic growth to service exports. This study, handled with a different perspective due to the inadequacy of studies on service exports in South Caucasian countries, contributes to filling the gap in the literature on the subject.

Keywords

Service Export Economic Growth Azerbaijan Georgia Armenia Causality

References

  • Ahmad, S.A. et al. (2017), “Determinants of service export in selected developing Asian countries”, International Journal of Business and Society, 18(1), 113-132.
  • Aigheyisi, O.S. (2020), “Does the export-led growth (ELG) hypothesis hold for services exports in Nigeria?”, West African Financial and Economic Review (WAFER), 20(12), 25-60.
  • Alege, P. & A. Ogundipe (2015), “The role of services trade in economic development”, British Journal of Economics, Management & Trade, 5(3), 350-365.
  • Davtyan, A. (2015), “Tourism businesses impact on the economic development of the Republic of Armenia”, Australian Journal of Asian Country Studies, SCIE Journals, 12-24.
  • Dickey, D.A. & W.A. Fuller (1981), “Likelihood ratio statistics for autoregressive time series with a unit root”, Econometrica, 49(4), 1057-1072.
  • Eichengreen, B & Gupta, P. (2011), “The Service sector as India’s road to economic growth”, National Bureau of Economic Research Working Paper 16757.
  • Eichengreen, B & P. Gupta (2009), “The two waves of service-sector growth”, Indian Council For Research On International Economic Relations Working Paper No. 235.
  • Feder, G. (1983),” On exports and economic growth”, Journal of Development Economics, 12(1-2), 59-73.
  • Fixler, D.J. & D. Siegel (1999), “Outsourcing and productivity growth in services”, Structural Change and Economic Dynamics, 10(2), 177-194.
  • Gabriele, A. (2006), “Exports of services, exports of goods, and economic growth in developing countries”, Journal of Economic Integration, 21(2), 294-317.
  • Ghani, E. & H. Kharas (2010), “The Service Revolution”, Economic Premise, No. 14, The World Bank.
  • Ghani, S.E. & R. Anand (2009), “How will changes in globalization impact growth in South Asia?”, World Bank Policy Research Working Paper, 5079.
  • Granger, C.W. & P. Newbold (1974), “Spurious regressions in econometrics”, Journal of Econometrics, 2(2), 111-120.
  • Granger, C.W. (1969), “Investigating causal relations by econometric models and cross-spectral methods”, Econometrica, 37(3), 424-438.
  • Hindley, B. & A. Smith (1984), “Comparative advantage and trade in services”, World Economy, 7(4), 369-390.
  • Hoekman, B. & A. Mattoo (2012), “Services trade and growth”, International Journal of Services Technology and Management, 17(2-4), 232-250.
  • Johansen, S. (1988), “Statistical analysis of cointegration vectors”, Journal of Economic Dynamics and Control, 12(2-3), 231-254.
  • Johansen, S. (1990), “The full information maximum likelihood procedure for inference on cointegration-with application to the demand for money”, Oxford Bulletin of Econometrics and Statistics, 52, 169-210.
  • Kaliappan, S.R. et al. (2017), “Service export and economic growth in the selected developing Asian countries”, International Journal of Economics & Management, 11(2), 393-418.
  • Kimura, F. & H.H. Lee (2006), “The gravity equation in international trade in services”, Review of World Economics, 142(1), 92-121.
  • Knoema (2020), Armenia - Travel Services in % of service exports, <https://knoema.com//atlas/armenia/topics/economy/balance-of-payments-current-accounts/Travel-services-percent-of-service-exports>, 02.03.2022.
  • Levine, R. & D. Renelt (1992), “A Sensitivity Analysis of Cross-Country Growth Regressions”, The American Economic Review, 82(4), 942-963.
  • Li, X. et al. (2005), “Imports of services and economic growth: A dynamic panel approach”, Informacion Comercial Espanola-Monthly Edition, 824(7).
  • Lucas Jr, R.E. (1988), “On the mechanics of economic development”, Journal of Monetary Economics, 22(1), 3-42.
  • Mankiw, N.G. et al. (1992), “A contribution to the empirics of economic growth”, The Quarterly Journal of Economics, 107(2), 407-437.
  • Matinkoi, S. (2020), “Service exports and economic growth in Kenya: a time series analysis 1980-2018”, PhD Dissertation, University of Nairobi.
  • Mattoo, A. et al. (eds.) (2008), A handbook of international trade in services, OUP Oxford Press.
  • Melvin, J.R. (1989), “Trade in producer services: a Heckscher-Ohlin approach”, Journal of Political Economy, 97(5), 1180-1196.
  • Mishra, S. et al. (2012), Service export sophistication and economic growth, <https://openknowledge.worldbank.org/bitstream/handle/10986/3372/WPS56>, 02.03.2022.
  • Nelson, R.R. & E.S. Phelps (1966), “Investment in humans, technological diffusion, and economic growth”, The American Economic Review, 56(1/2), 69-75.
  • Nordås, H.K. (2010), “Trade in goods and services: Two sides of the same coin?”, Economic Modelling, 27(2), 496-506.
  • Phạm, V.N. & T.H. Vũ (2014), “Analyzing the determinants of service trade flows between Vietnam and the European Union: a gravity model approach”, VNU Journal of Science: Economics and Business, 30(5E), 51-64.
  • Priyankara, E.A.C. (2018), “Services exports and economic growth in Sri Lanka: Does the export-led growth hypothesis hold for services exports?”, Journal of Service Science and Management, 11(04), 479-495.
  • Romer, P.M. (1190), “Endogenous technological change”, Journal of Political Economy, 98, 71-102.
  • Rubalcaba, L. (2013), “Innovation and the new service economy in Latin America and the Caribbean”, Inter-American Development Bank Discussion Paper No: DP-281.
  • Sahoo, P. & R.K. Dash (2017), “What drives India's surge in service exports?”, The World Economy, 40(2), 439-461.
  • Sapir, A. & E. Lutz (1980), “Trade in non-factor services: past trends and current issues”, World Bank Staff Working Paper No. 410, Washington, DC.
  • Sermcheep, S. (2019), “Services export and economic growth in ASEAN countries”, Journal of Asian Economic Integration, 1(2), 163-182.
  • Smith, A. (1776), An Inquiry into the Nature and Causes of the Wealth of Nations.
  • Solow, R.M. (1956), “A contribution to the theory of economic growth”, The Quarterly Journal of Economics, 70(1), 65-94.
  • Toda, H.Y. & T. Yamamoto (1995), “Statistical inference in vector autoregressions with possibly integrated processes”, Journal of Econometrics, 66(1-2), 225-250.
  • UNCTAD (2002), Statistics, <https://unctad.org/statistics>, 02.03.2022.
  • UNCTAD (2004), “Exports of services and economic growth in developing countries”, United Nations Conference On Trade And Development, 45.
  • WDB (2022), World Development Indicators, <https://databank.worldbank.org/source/world-development-indicators>, 02.03.2022.
  • WTO (2022), Global Trade, <https://www.wto.org/>, 02.03.2022.
  • Wu, Z. et al. (2015), “Modern service industry and crossover services: Development and trends in china”, IEEE Transactions on Services Computing, 9(5), 664-671.
  • Yusuf, S. (2015), “The brave new world of services-led growth”, Eurasian Geography and Economics, 56(6), 602-617.

Hizmet İhracatı ile Ekonomik Büyüme İlişkisinin Güney Kafkas Ülkeleri Çerçevesinde Analizi

Year 2023, Volume: 31 Issue: 55, 233 - 252, 31.01.2023

Eser Çapık , Hidayet Gizem Ünlü Ören

https://doi.org/10.17233/sosyoekonomi.2023.01.12
Cited By: 1

Abstract

Ele alınan çalışmada Azerbaycan, Ermenistan ve Gürcistan için hizmet ihracatının ekonomik büyüme üzerindeki etkisi incelenmiştir. Üç ayrı nedensellik analizinin yapıldığı çalışmada Azerbaycan ve Ermenistan’da Toda-Yamamoto nedensellik testi sonuçları, hizmet ihracatı ile ekonomik büyüme arasında herhangi bir nedensellik ilişkisinin olmadığını gösterirken, Gürcistan için ise ekonomik büyümeden hizmet ihracatında doğru tek yönlü bir nedenselliğin olduğu tespit edilmiştir. Güney Kafkas ülkelerinde hizmet ihracatına yönelik çalışmaların yetersizliği nedeniyle farklı bir bakış açısı ile ele alınan bu çalışma, konuya yönelik literatürdeki boşluğun doldurulmasına katkı sağlamaktadır.

Keywords

Hizmet İhracatı GSYİH Azerbaycan Gürcistan Ermenistan Nedensellik

References

  • Ahmad, S.A. et al. (2017), “Determinants of service export in selected developing Asian countries”, International Journal of Business and Society, 18(1), 113-132.
  • Aigheyisi, O.S. (2020), “Does the export-led growth (ELG) hypothesis hold for services exports in Nigeria?”, West African Financial and Economic Review (WAFER), 20(12), 25-60.
  • Alege, P. & A. Ogundipe (2015), “The role of services trade in economic development”, British Journal of Economics, Management & Trade, 5(3), 350-365.
  • Davtyan, A. (2015), “Tourism businesses impact on the economic development of the Republic of Armenia”, Australian Journal of Asian Country Studies, SCIE Journals, 12-24.
  • Dickey, D.A. & W.A. Fuller (1981), “Likelihood ratio statistics for autoregressive time series with a unit root”, Econometrica, 49(4), 1057-1072.
  • Eichengreen, B & Gupta, P. (2011), “The Service sector as India’s road to economic growth”, National Bureau of Economic Research Working Paper 16757.
  • Eichengreen, B & P. Gupta (2009), “The two waves of service-sector growth”, Indian Council For Research On International Economic Relations Working Paper No. 235.
  • Feder, G. (1983),” On exports and economic growth”, Journal of Development Economics, 12(1-2), 59-73.
  • Fixler, D.J. & D. Siegel (1999), “Outsourcing and productivity growth in services”, Structural Change and Economic Dynamics, 10(2), 177-194.
  • Gabriele, A. (2006), “Exports of services, exports of goods, and economic growth in developing countries”, Journal of Economic Integration, 21(2), 294-317.
  • Ghani, E. & H. Kharas (2010), “The Service Revolution”, Economic Premise, No. 14, The World Bank.
  • Ghani, S.E. & R. Anand (2009), “How will changes in globalization impact growth in South Asia?”, World Bank Policy Research Working Paper, 5079.
  • Granger, C.W. & P. Newbold (1974), “Spurious regressions in econometrics”, Journal of Econometrics, 2(2), 111-120.
  • Granger, C.W. (1969), “Investigating causal relations by econometric models and cross-spectral methods”, Econometrica, 37(3), 424-438.
  • Hindley, B. & A. Smith (1984), “Comparative advantage and trade in services”, World Economy, 7(4), 369-390.
  • Hoekman, B. & A. Mattoo (2012), “Services trade and growth”, International Journal of Services Technology and Management, 17(2-4), 232-250.
  • Johansen, S. (1988), “Statistical analysis of cointegration vectors”, Journal of Economic Dynamics and Control, 12(2-3), 231-254.
  • Johansen, S. (1990), “The full information maximum likelihood procedure for inference on cointegration-with application to the demand for money”, Oxford Bulletin of Econometrics and Statistics, 52, 169-210.
  • Kaliappan, S.R. et al. (2017), “Service export and economic growth in the selected developing Asian countries”, International Journal of Economics & Management, 11(2), 393-418.
  • Kimura, F. & H.H. Lee (2006), “The gravity equation in international trade in services”, Review of World Economics, 142(1), 92-121.
  • Knoema (2020), Armenia - Travel Services in % of service exports, <https://knoema.com//atlas/armenia/topics/economy/balance-of-payments-current-accounts/Travel-services-percent-of-service-exports>, 02.03.2022.
  • Levine, R. & D. Renelt (1992), “A Sensitivity Analysis of Cross-Country Growth Regressions”, The American Economic Review, 82(4), 942-963.
  • Li, X. et al. (2005), “Imports of services and economic growth: A dynamic panel approach”, Informacion Comercial Espanola-Monthly Edition, 824(7).
  • Lucas Jr, R.E. (1988), “On the mechanics of economic development”, Journal of Monetary Economics, 22(1), 3-42.
  • Mankiw, N.G. et al. (1992), “A contribution to the empirics of economic growth”, The Quarterly Journal of Economics, 107(2), 407-437.
  • Matinkoi, S. (2020), “Service exports and economic growth in Kenya: a time series analysis 1980-2018”, PhD Dissertation, University of Nairobi.
  • Mattoo, A. et al. (eds.) (2008), A handbook of international trade in services, OUP Oxford Press.
  • Melvin, J.R. (1989), “Trade in producer services: a Heckscher-Ohlin approach”, Journal of Political Economy, 97(5), 1180-1196.
  • Mishra, S. et al. (2012), Service export sophistication and economic growth, <https://openknowledge.worldbank.org/bitstream/handle/10986/3372/WPS56>, 02.03.2022.
  • Nelson, R.R. & E.S. Phelps (1966), “Investment in humans, technological diffusion, and economic growth”, The American Economic Review, 56(1/2), 69-75.
  • Nordås, H.K. (2010), “Trade in goods and services: Two sides of the same coin?”, Economic Modelling, 27(2), 496-506.
  • Phạm, V.N. & T.H. Vũ (2014), “Analyzing the determinants of service trade flows between Vietnam and the European Union: a gravity model approach”, VNU Journal of Science: Economics and Business, 30(5E), 51-64.
  • Priyankara, E.A.C. (2018), “Services exports and economic growth in Sri Lanka: Does the export-led growth hypothesis hold for services exports?”, Journal of Service Science and Management, 11(04), 479-495.
  • Romer, P.M. (1190), “Endogenous technological change”, Journal of Political Economy, 98, 71-102.
  • Rubalcaba, L. (2013), “Innovation and the new service economy in Latin America and the Caribbean”, Inter-American Development Bank Discussion Paper No: DP-281.
  • Sahoo, P. & R.K. Dash (2017), “What drives India's surge in service exports?”, The World Economy, 40(2), 439-461.
  • Sapir, A. & E. Lutz (1980), “Trade in non-factor services: past trends and current issues”, World Bank Staff Working Paper No. 410, Washington, DC.
  • Sermcheep, S. (2019), “Services export and economic growth in ASEAN countries”, Journal of Asian Economic Integration, 1(2), 163-182.
  • Smith, A. (1776), An Inquiry into the Nature and Causes of the Wealth of Nations.
  • Solow, R.M. (1956), “A contribution to the theory of economic growth”, The Quarterly Journal of Economics, 70(1), 65-94.
  • Toda, H.Y. & T. Yamamoto (1995), “Statistical inference in vector autoregressions with possibly integrated processes”, Journal of Econometrics, 66(1-2), 225-250.
  • UNCTAD (2002), Statistics, <https://unctad.org/statistics>, 02.03.2022.
  • UNCTAD (2004), “Exports of services and economic growth in developing countries”, United Nations Conference On Trade And Development, 45.
  • WDB (2022), World Development Indicators, <https://databank.worldbank.org/source/world-development-indicators>, 02.03.2022.
  • WTO (2022), Global Trade, <https://www.wto.org/>, 02.03.2022.
  • Wu, Z. et al. (2015), “Modern service industry and crossover services: Development and trends in china”, IEEE Transactions on Services Computing, 9(5), 664-671.
  • Yusuf, S. (2015), “The brave new world of services-led growth”, Eurasian Geography and Economics, 56(6), 602-617.
There are 47 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Eser Çapık 0000-0002-2754-023X

Hidayet Gizem Ünlü Ören 0000-0001-6081-096X

Publication Date January 31, 2023
Submission Date March 17, 2022
Published in Issue Year 2023 Volume: 31 Issue: 55

Cite

APA Çapık, E., & Ünlü Ören, H. G. (2023). Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries. Sosyoekonomi, 31(55), 233-252. https://doi.org/10.17233/sosyoekonomi.2023.01.12
AMA Çapık E, Ünlü Ören HG. Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries. Sosyoekonomi. January 2023;31(55):233-252. doi:10.17233/sosyoekonomi.2023.01.12
Chicago Çapık, Eser, and Hidayet Gizem Ünlü Ören. “Analysis of the Relationship Between Service Export and Economic Growth in the Framework of South Caucasus Countries”. Sosyoekonomi 31, no. 55 (January 2023): 233-52. https://doi.org/10.17233/sosyoekonomi.2023.01.12.
EndNote Çapık E, Ünlü Ören HG (January 1, 2023) Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries. Sosyoekonomi 31 55 233–252.
IEEE E. Çapık and H. G. Ünlü Ören, “Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries”, Sosyoekonomi, vol. 31, no. 55, pp. 233–252, 2023, doi: 10.17233/sosyoekonomi.2023.01.12.
ISNAD Çapık, Eser - Ünlü Ören, Hidayet Gizem. “Analysis of the Relationship Between Service Export and Economic Growth in the Framework of South Caucasus Countries”. Sosyoekonomi 31/55 (January 2023), 233-252. https://doi.org/10.17233/sosyoekonomi.2023.01.12.
JAMA Çapık E, Ünlü Ören HG. Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries. Sosyoekonomi. 2023;31:233–252.
MLA Çapık, Eser and Hidayet Gizem Ünlü Ören. “Analysis of the Relationship Between Service Export and Economic Growth in the Framework of South Caucasus Countries”. Sosyoekonomi, vol. 31, no. 55, 2023, pp. 233-52, doi:10.17233/sosyoekonomi.2023.01.12.
Vancouver Çapık E, Ünlü Ören HG. Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries. Sosyoekonomi. 2023;31(55):233-52.

Cited By

HİZMET İHRACATI VE EKONOMİK BÜYÜME ARASINDAKİ BAĞLANTIDA DİJİTAL TEKNOLOJİLERİN MODERATÖR ETKİSİ: YÜKSEK GELİRLİ ÜLKELER ÜZERİNE PANEL VERİ ANALİZİ
Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi
https://doi.org/10.37880/cumuiibf.1332368
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