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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In short, while one can surely argue that manufacturing export-led growth still carries significant advantages to a country's economic growth, job creation, earning of necessary foreign exchange and in building its manufacturing capacity without having to worry about domestic demand, the reality is that the modern day world is unlikely to see a repeat of the growth success stories of China and East Asia achieved mainly on the back of the manufacturing-export-led model.
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.
Historically, China's hugely successful export-led growth strategy, together with the rapid growth of China-centric global supply chains, was the major reason why I never bought the decoupling story.
There are several countries that show good examples for export-led growth strategy (Federici and Marconi, 2002; Awokuse, 2003; Hossain and Karunaratne, 2004; Siliverstovs and Herzer, 2006; Chen, 2007; Awokuse, 2008).
Earlier this month, Rajan had sounded a word of caution about the new government's 'Make in India' campaign, saying it assumes an export-led growth path of China and it should rather be 'Make for India' with a focus on manufacturing products for the domestic market.
2002) investigated the export-led growth hypothesis for five South Asian countries (Pakistan, Bangladesh, India, Nepal and Sri Lanka) by using co-integration technique in a restricted VAR model.
Reserve Bank of India governor, Raghuram Rajan, has cautioned the government against too much focus on merchandise export-led growth.
For small national economies like Macedonia inward-oriented import substitution policies are no option, instead they have to refer to outward-oriented export-led growth.
The nation has been urged to take the issue of an export-led growth strategy seriously as a tool to complement the fourth National Development Plans (NDP4) to help achieve its growth aspirations.
Contributors analyze broad patterns of industrial restructuring in a variety of countries; the global economic recession and challenges to China's export-led growth strategy; the implications of the global financial and economic crisis for trade and industrial restructuring in South Asia; the impact of the global economic crisis on the industrial structure and firm activities of Taipei, China; evidence concerning the relationship between industrial upgrading and global recession from the hard disk drive and automotive industries in Thailand; and the economic crisis and the restructuring of the service sector in India.
In his recent Budget, the Chancellor reiterated the importance of advanced manufacturing to achieving sustainable UK economic growth and began the process of shifting the basis of the recovery towards high-value, export-led growth.
Many emerging economies will also likely enjoy stronger growth next year, pulled along by export-led growth to the US, Europe and China.