Export and growth in ASEAN: does export destination matter?

Abstract

Purpose The association between export destinations and economic growth remains under-researched, despite the large literature on export-led growth. This paper aims to fill in the gap of the literature. It analyzes the effects of exporting on economic growth in the Association of Southeast Asian Nations (ASEAN) and further explores which export destinations are most desirable in terms of promoting economic growth. Design/methodology/approach With panel data for ASEAN countries from 1986 to 2013, this paper performs both fixed effects estimation and Arellano–Bond GMM estimation. Findings Robust findings reveal that to promote economic growth, it is most beneficial for ASEAN countries to export to the Western industrial countries, followed by exporting to Japan, Korea and China. Exporting to the rest of the world does not appear to generate significantly positive effect on economic growth. Originality/value The findings have important policy implications for ASEANs to further develop their trade policy.