The Relationship between Export and Economic Growth in Libya Arab Jamahiriya

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.