Abstract:

Total factor efficiency, economic growth and exports are significant macroeconomic dimensions, especially for the developing countries. In this study, the relationship between these three sizes was studied by the 1990-2017 period data for the 26 developing countries that are included in the group of high-mediate income countries according to the current income grouping criteria of the World Bank. In the study using the panel causality analysis, a one-way causality relationship was found between the overall factor efficiency and the export from the overall factor efficiency to the export. There is also a double cause between the overall factor efficiency and economic growth. The findings show that the overall factor efficiency in developing countries is one of the main causes of growth and exports.

Keywords:

Abstract:

Total factor productivity, economic growth and exports are important macroeconomic sizes, especially for developing economies. In this study, the relationship between these three sizes is analyzed with the data of 1990-2017 for 26 developing countries in the upper middle income countries group according to the current income grouping criteria of the World Bank. In the study in which panel causality analysis is used, one-way causality relationship is found between total factor productivity and exports from total factor productivity to exports. Bidirectional causality is also found between total factor productivity and economic growth. Findings indicate that, total factor productivity is one of the main causes of growth and exports in developing countries. Key Words: Total Factor Productivity, Economic Growth, Exports, Panel Causality JEL Classification: F43, O33, 047