Exports as a determinant of long-run growth in Paraguay, 1966-96

During the 1970s and early 1980s Paraguay experienced relatively high rates of economic growth as well as a boom in primary goods production destined for export. The question which this research addresses concerns the relatio nship between these events and the applicability, of the so-called export-l ed growth (ELG) hypothesis. The hypothesis is investigated via the use of m odern time series methods including Granger causality tests, error correcti on modeling, and vector autoregression. The basic conclusion reached is tha t the ELG does not have much relevance to the Paraguayan case.