This study examines the relationship between vegetable exports and economic growth, and finds that vegetable exports do not lead to economic growth. It suggests that trade policies regarding vegetable exports should be reframed to improve exports growth and diversify capital/investment.
The present study examines whether the vegetable exports lead to economic growth or not; and analyze the relationship between the vegetables exports and vegetables imports, capital and economic growth in selected SAARC economies for a period of 1988-2018. Present study employed panel econometric techniques; such as LLC, IPS, Johansen-Fisher Coinetegration, Fully Modified Ordinary Least Square, heterogeneous causality to draw the empirical inferences. The present study confirmed that vegetables exports do not lead the economic growth in selected SAARC economies and rejected the Export led growth hypothesis. However, there is a long run relationship exists between the vegetables exports, vegetables imports, capital and economic growth in selected SAARC economies. The study suggested that policy makers to reframe the trade policies with respect to vegetables exports, and especially reduce the trade restriction for the SAARC nations. These policy suggestions not only helpful to improve the exports growth in the long run but also improve basic infrastructure facilities through diversifying their capital/investment.
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