“RELATIONSHIP AMONG EXPORT, IMPORT AND ECONOMIC GROWTH: USING CO-INTEGRATION ANALYSIS”

Abstract

Export is one of key factor on the sustainability of economic growth either in developing or developed countries. This issue attracted researchers to examine the relationship between export and economic growth in Bahrain by using data from 1986 until 2018. Johansen co-integration and Granger causality is conducted for data analyze. The finding reveals that the co-integration between all variables are existence at 5% significant level. For granger causality test, found that there is no causality exists between export, import and capital with and economic growth. Therefore, this finding will contribute to government in making policy to control the export for avoid unsustainable of economic growth.

The findings indicate that the inconclusive effects of previous empiric research on export, import and capital and economic growth have not been finalized