This essay will focus on discussing exports led growth strategy, import substitution policy, and the main differences between the two strategies and the most superior one. Those in support of the export led growth strategy usually do so on the basis that it is the normal and effective substitute to other strategies of development.
They started to export the goods in 1960s and they remarkably increase their growth from that period. Import substitution is sharply contrasted with outward (export) oriented approach. In the export promotion, primary attention is given to the foreign trade and exports. (Bruton(1997) p904).
Second, Income from export is not a reliable source for economic development for developing countries. As many of the export oriented industrializations in these countries are owned by multinational corporations, and large portion of revenue from such sources are not repatriated, to be used for re-investment (Jaffee, 1985). 4. Empirical evidence.
Export-Led Growth: Evidence of Developing Country Crowding-out Abstract Over the last two decades there has been a dramatic shift in the stance of development policy with import-substitution being replaced by the export-led growth. A significant concern with this latter model is that it may risk turning global growth into a zero-sum game.
The Human Development Report 1999 (United Nations Development Program, 1999) stated that globalization, export-led growth and other strategies have failed address human concerns. From a gender perspective, the biggest problem with export-led growth is that it ignores the societal imbalances which may affect the distribution of benefits.
An Analysis of So-Called Export-led Growth Prepared by Jie Yang1 Authorized for distribution by Jianhai Lin September 2008 Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
The export-led growth hypothesis (ELGH) postulates that export expansion is one of the main determinants of growth. It holds that the overall growth of countries can be generated not only by increasing the amounts of labour and capital within the economy, but also by expanding exports. According to its advocates, exports can perform as an “engine.
View Export-Led Development Research Papers on Academia.edu for free.
In this article we will discuss about import substitution and export promotion. Most economists and policymakers view LDCs as consisting of large “traditional” and “modern” sectors. Hence development has come to be seen as a process of contracting the traditional sector and its growth-retarding institutions in favour of a growing modern industrial sector.
According to Meier, a more important explanation why export-led growth occurred in some countries but not in others is “to distinguish the differential effects of the integrative process by focusing on the stimuli in different countries from their exports and on the different response mechanism within the exporting countries”, He argued that in the underdeveloped countries where export-led.
Export-led growth focuses on a country encouraging the development of specific industries for the purpose of exporting the goods abroad. Exports in this context typically refer to manufactured goods or raw materials, not services, according to Shahid Yusuf, a development economist at the World Bank.
Author: Yang Yao, Peking University China’s export-led growth is rooted in a double transition of structural change and demographic transition. Accession to the WTO has allowed China to fully integrate into the world system and capture the gains of its comparative advantage in abundant labour supply. The double transition will take 10 to 15 years to finish.