immiserizing growth


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immiserizing growth

a situation in which a DEVELOPING COUNTRY's attempt to increase its growth potential through EXPORTS actually results in a retardation of that potential. This is very much an exceptional situation confined only in theory to a country whose export speciality (some mineral or agricultural crop) accounts for a preponderant share of world trade in the product. The country needs to export more to earn the foreign exchange to finance the capital imports that it requires to underpin domestic growth. If all its export effort is concentrated on its speciality, this could lead to an ‘oversupply’ of the product, resulting in a deterioration of the country's TERMS OF TRADE. As a result, the country's foreign exchange earnings will now buy fewer imports, and domestic growth potential will be impaired. See ECONOMIC DEVELOPMENT.
References in periodicals archive ?
(5) In this sense, a skewed sex ratio can produce immiserizing growth.
109) due to 'immiserizing growth' (2) (Bhagwati, 1958).
Tariffs, Foreign Capital and Immiserizing Growth, Journal of, International Economics, 7: 317-322.
(2) Finally, a classic result that does not depend on asymmetries in taste patterns, but rather upon the degree of elasticity in demand and the nature of growth is the question of whether a country that unequivocally grows (transformation schedule shifts out) can be made worse off as a consequence of growth (the so-called immiserizing growth paradox).
1973: The theory of immiserizing growth: further application.
Kaplinksy R, M Morris and J Readman (2002) 'The globalisation of product markets and immiserizing growth: lessons from the South African furniture industry', World Development 30(7).
(4.) Immiserizing growth occurs when the TOT worsens so much as a consequence of export-biased growth that the country is made worse off than before.
It will be shown that a country may or may not experience immiserizing growth in the presence of a trade restriction.
(3) Jagdish Bhagwati, "Immiserizing Growth: A Geometrical Note," Review of Economic Studies, 25, no.
Moreover, the paradoxes of immiserizing growth disappear.(3)
Tariffs, Foreign Capital and Immiserizing Growth', Journal of International Economics, 7, 317-22.
The vocabulary of this literature has already been extensively used in this conference as in labour-intensive, comparative advantage, immiserizing growth, and so on, and as such, I simply continue the conversation.