How does manufacturing output affect export behaviors in emerging market economies? Evidence from a dynamic panel ARDL for ten biggest emerging market economies

Realizing the export-led economic growth potential, the study aims to check the dynamic influence of manufacturing output premised on learning effects model on the export behavior of emerging market economies. Among the mean group and pooled mean group models in the umbrella method of autoregressive-distributed lag econometric technique, the latter one was chosen as it has added advantages. Also, it is supported by the Hausman test. The findings articulate that manufacturing value-added is an important ingredient, which influences the export testifying the existence of dynamic learning effects in export growth. A dynamic model of acquiring sophistication among exporters pinpoints the learning effects technique of exports. The export competitiveness is actualized through a dynamic learning process. The policy suggestion in this regard is to pace up mechanization of the economies, foster measures to reduce supply rigidities and labor market inflexibilities, and assist small and medium-scale enterprises and other types of firms in finding fresh avenues of long-term investment from foreign and advocating domestic supplies.

Automated summary

The study examines the dynamic influence of the learning effects model on manufacturing output on the export behavior of emerging market economies. It finds that manufacturing value-added plays a crucial role in export, demonstrating the existence of dynamic learning effects in export growth. Export competitiveness is achieved through a dynamic learning process. Policy recommendations include accelerating mechanization, reducing supply rigidities, assisting businesses in finding foreign investment opportunities, and promoting domestic supplies.