Nonlinearity in ASEAN-5 export-led growth model: Empirical evidence from nonparametric approach

► We model the export-led growth hypothesis in the nonlinear form in ASEAN-5. ► Violation of assumption causes the linear model to be apparently inconclusive. ► Nonlinear cointegration is found between real export and real GDP in 4 countries. ► Significant nonlinear causality is detected in Thailand and Philippines. ► Nonlinear analysis provides better understanding on the dynamics of ELG.