CAUSALITY BETWEEN PRODUCTIVITY AND EXPORTS IN AGRICULTURE - EVIDENCE FROM ASIA AND LATIN-AMERICA

This paper examines the causal relationship between agricultural produ ctivity and exports for selected Asian and Latin American countries. A lternative views about the causal relationship between. these variable s of economic interest exist. Economic theory provides no firm basis t o judge whether productivity causes exports or exports cause productiv ity (export-led growth). Since this issue is empirical, econometric te sts are utilised to investigate the nature of this causality. Test res ults are mixed although the export-led growth hypothesis is validated in a few cases.