The Export-Led Growth: A Case Study of Costa Rica

This paper empirically investigates the export-led growth hypothesis for Costa Rica. Johansen co-integration and Granger Causality tests are employed to investigate the long-run relationship and causality between exports and economic growth respectively. The results of Johansen co-integration indicate a long-run equilibrium relationship between exports and economic growth. Granger causality test results show an unidirectional causality from economic growth to export growth of Costa Rica.