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Historical Experiance, Proofs and Relevance of 'Trade Lead Growth' for Transition Countries

Author

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  • Dragoljub Stojanov

    (Ekonomski fakultet, Rijeka)

Abstract

In this paper we wish to suggest that: " obsession" with competitiveness and trade openness, together with " hands off" type of economic policy, may hardly lead a country towards "real income "convergence on her long-run development path. Moreover, such an obsession may have deflationary impact upon an economy defined as "factor-driven economy), let alone on an" aid- driven economy". The first part of the paper is an attempt to make an insight into deliberation of the leading economists on the issue. The second part of this paper is devoted to the XIX experience of LDC's development path, and Japan's since the Second World war. Concluding remarks suggest growth-led export, instead of mainstream dogma of export- lead growth, as a more convenient development paradigm on the way to both: real and overall convergence between CEECs and EU.

Suggested Citation

  • Dragoljub Stojanov, 2005. "Historical Experiance, Proofs and Relevance of 'Trade Lead Growth' for Transition Countries," Ekonomija Economics, Rifin d.o.o., vol. 12(1), pages 57-77.
    • Handle: RePEc:eff:ekoeco:v:12:y:2005:i:1:p:57-77
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