export-led growth


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export-led growth

an expansion of the economy with EXPORTS serving as a ‘leading sector’. As exports rise, they inject additional income into the domestic economy and increase total demand for domestically produced output (see EXPORT MULTIPLIER). Equally importantly, the increase in exports enables a higher level of import absorption to be accommodated so that there is no BALANCE OF PAYMENTS constraint on the achievement of sustained ECONOMIC GROWTH. See CIRCULAR FLOW OF NATIONAL INCOME MODEL.
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