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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Three major and rather different interpretations have been provided in the literature on the meaning of export-led growth. The earliest contributions, influenced by the economic history of 'temperate-zone lands originally settled by European migrant labor and capital' (Caves, 1966, p.
The purpose of this paper is to challenge the results of the empirical literature in support of the neoclassical theory of export-led growth and to provide a theoretical and empirical alternative.
In light of the parallel growth in these two variables, it is important to examine the validity of the export-led growth hypothesis in the case of China.
He said that the government would give priority to promotion of export-led growth including furniture sector by enhancing exports and reduce dependence on imports, adding that it had identified many sectors that would boost exports from the country.
The defect lies in the strategy which was not focused on sustainable external relations through export-led growth.
Lastly, the focus must be on export-led growth and ensuring availability of raw material and intermediate goods to domestic producers.
Although Rwandas export sector is still small, the progress made in the past decade sends a clear message that an export-led growth is within reach for Rwanda, and countrys long-term growth strategy should continue focusing on strengthening economys capacity to produce exportable goods and services, said Aghassi Mkrtchyan, World Bank Senior Economist.
He termed Prime Minister's Export-led Growth Package a positive one but non-allocation of funds for the incentives of this package has shattered all hopes.
The Aptma official also demanded proper allocation of funds against the Prime Minister's export-led growth package announced in January this year, which envisaged payments of Rs10 billion/month, whereas only Rs 2 billion has been released so far during the last four months.
Speaking in Shanghai midway through a five day visit to China, Osborne was on a mission to forge stronger economic ties with the world's second largest economy, and said Beijing's switch in strategy away from an export-led growth would present more opportunities.
Specific topics include the sustainability of export-led growth, climate change mitigation, financial reform, capital account liberalization, social security reform, participation in the World Trade Organization, outward direct investment, and China's involvement in global governance.
Mr Cable said: "As we rebalance the economy with more export-led growth, retail has an important role to play.