Abstract

This paper investigates the causal relationship between shery's exports and its economic growth in Indonesia by utilizing cointegration and error-correction models. Using annual data from 1969 to 2005, we nd the evidence that there exist the long-run relationship as well as bi-directional causality between exports and economic growth in Indonesia's shery sub-sector. To the best of our knowledge, this is the rst research that examine this issue focusing on a natural resource based industry, and the results shed light on the role of agriculture sector for economic growth in the developing countries.