Asymmetric Cointegration between Services Exports and Economic Growth in Sri Lanka: Based on Nonlinear ARDL Model

DOI

10.2991/icmesd-18.2018.150How to use a DOI?

Keywords

Nonlinear autoregressive distributed lag (NARDL) model, Services exports, Asymmetric, Cointegration, Economic growth, Sri Lanka.

Abstract

This study examines the asymmetric cointegration between services exports and economic growth in Sri Lanka.A nonlinear ARDL model is employed to analyze on the annual time series data over the period from 1984-2013.The results show that(1) ignorance of asymmetries between services exports and economic growth may lead towards misleading conclusions. (2) there is statistically significantdifference in the response of economic growth to positive and negative shocks to the services exports both in long- and short-run. (3) the long-run coefficient of decreasing services exports is -0.65434 and it is six time lager than the coefficient (0.10917) of increasing services exports. Hence, economic growth is more sensitive to the downturn of services exports than upturn. This empirical evidence of asymmetries could be of important in advocating services exports policies in achieving long-run economic growth in Sri Lanka.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - EAC Priyankara
AU  - Zhao-Hua Li
PY  - 2018/05
DA  - 2018/05
TI  - Asymmetric Cointegration between Services Exports and Economic Growth in Sri Lanka: Based on Nonlinear ARDL Model
BT  - Proceedings of the 4th Annual International Conference on Management, Economics and Social Development (ICMESD 2018)
PB  - Atlantis Press
SP  - 874
EP  - 879
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmesd-18.2018.150
DO  - 10.2991/icmesd-18.2018.150
ID  - Priyankara2018/05
ER  -