Export-Led Growth Hypothesis: empirical evidence of industry sector in aggregate and sub-sectors in Iran

According to the importance of industrial export in industry sector value added growth and its impact on prosperity and economic growth in whole economy in developing and developed countries, in this study, the industrial export-economic growth nexus is investigated in the period of 1373-1394 based on the maximum availability of data in Iran. Evaluation the impact of industrial export on industry value added growth will be done based on the panel data model by using fixed and random effect estimators. The results confirm the export-led growth hypothesis in industry sector of Iran. Also, the results of sub-sector model estimation indicate that the impact of industrial export on industrial value added growth in food industries, textile industries, chemical and rubber industries, non-metallic mineral products and machinery industries is positive and significant whereas the impact of industrial export on industrial value added growth in Wood, paper, basic metals and other industries is positive but insignificant. Exports of non-metallic mineral products industries, chemical and rubber industries and machinery industries among nine sub-sectors have the greatest impact on the value added of the industrial sector respectively during the underlying time period.