DO LABOR PRODUCTIVITY AND EXPORTS STIMULATE GROWTH? EMPIRICAL EVIDENCE FROM THE LEAST DEVELOPED COUNTRIES (LDCS)

Authors : Emre Özsalman, Nuri Hacıevliyagil

Pages : 76-85

Doi:10.30711/utead.1830057

View : 83 | Download : 123

Publication Date : 2025-12-27

Article Type : Other Papers

Abstract :Despite having a large population, the Least Developed Countries (LDCs) only make up 1% of world trade because of their low levels of human capital, fragile economies, and extremely low labor productivity (LP Herafter). Although low LP in exports is the biggest barrier to increasing this rate, exports have a crucial role in the economic growth (EG herafter) of this country’s group. The purpose of this study is to examine, using complete data covering the years 2000–2021, the impacts of LP and exports on EG in 24 of the LDCs countries. Additionally, the study aims to determine if applying an export-based growth model contributes to the EG in selected country groups. Dumitrescu and Hurlin\\\'s (2012) Granger causality test revealed a bidirectional causality between LP and EG, however the relationship between exports and EG was found to be statistically insignificant. Given the causality between exports and EG, applying the export-led EG model to these countries does not appear feasible.
Keywords : En Az Gelişmiş Ülkeler, Ekonomik Büyüme, İhracat, İşgücü Verimliliği

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