Export-led transitional dynamics: roles of investment and learning by doing

The current focus strives to show that investment dynamics are central to achieving export competitiveness and that such a transition to advanced growth is implicit in the balance of payments constrained growth models. The transition and a higher pace of investment are guided mainly by the growth of intermediate goods specializations. In this focus, instead of steady-state growth underlying BPCG models, the primacy is given to new investment opportunities that target larger output, and the ensuing export competitiveness and the realization of the output ensure the generation of the savings. Since investment-led dynamism moves away from a picture of steady-state growth and therefore the automatic operations of the acceleration principle of investment that otherwise also assumes automatic savings investment equality, the current focus also hints accordingly that the transition might not materialize, though this also implies countries witnessing short-run Keynesian equilibrium positions that negate the transition.