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Theoretical and Applied Economics
No. 1 / 2010 (542)

The Relationship between Export and Economic Growth in Libya Arab Jamahiriya

University Alfath in Tripoli, Libia
Abdulbaset M. HAMUDA
Technical University in Košice, Slovakia
Vladimir GAZDA
Technical University in Košice, Slovakia

Abstract. This study investigates the relationships between export and economic growth in Libya. An econometric model has been developed and estimated in order to determine the direction of causality in both, short and long run. The annual time series used for the estimation cover the time period 1980 – 2007. The findings indicate that the income, exports and relative prices are cointegrated. The long run bidirectional causality between the exports and income growth has been also proved. The study result indicates that the export promotion policy contributes to the economic growth in Libya.

Keywords: export; economic growth; Libya; cointegration; Granger causality; export led growth.

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