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How export-led growth can lead to take-off

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  • Maximilian Benner

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    (Lueneburg)

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    Abstract

    Export-led growth has gained considerable prominence as a model for economic development since its use by East Asian newly industrializing countries. Thus, the question of how it can be used by other countries wishing to industrialize and under what circumstances it can lead to the take-off of an economy is highly relevant for development policy. In light of current macroeconomic imbalances on the global stage, the question of sustainability arises: Is take-off by export-led growth possible without permanent balance-of-trade surpluses? The article gives a brief overview and offers thoughts into various ways in which the impetus of exportled growth for the overall economy might work.

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    Bibliographic Info

    Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 222.

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    Length: 17 pages
    Date of creation: Dec 2011
    Date of revision:
    Handle: RePEc:lue:wpaper:222

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    Related research

    Keywords: development; export-led growth; export base; industrialization; industrial policy; take-off; comparative advantage; new trade theory;

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    1. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 17-25, Autumn.
    2. Bas ter Weel & L. Soete & B. Verspagen, 2010. "Systems of innovation," CPB Discussion Paper 138, CPB Netherlands Bureau for Economic Policy Analysis.
      • Soete, Luc & Verspagen, Bart & Weel, Bas ter, 2009. "Systems of Innovation," MERIT Working Papers 062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    4. Tri Widodo, 2008. "Dynamic changes in comparative advantage: Japan “flying geese” model and its implications for China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 1(3), pages 200-213, December.
    5. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
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