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.