Growth And Export Expansion In Mauritius - A Time Series Analysis

Abstract

This paper analyses the empirical relationship between economic growth and export expansion in Mauritius as  observed through time series data. Using Granger Causality tests, the short-run analysis results revealed that there is significant reciprocal causality between real export earnings (total, textiles and manufacturing) and real GDP and between real export earnings growth (total, textiles and manufacturing) and real GDP growth. The paper highlights the remarkable economic success achieved by Mauritius through the vigorous pursuit of an export promotion strategy.

Keywords: Export Expansion Hypothesis, Exports, Growth, Correlation.