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Exports and economic growth. The gains from reallocation in Korea

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  • España, J.R.

Abstract

This paper presents some empirical evidence suggesting that promotion of manufactured exports can lead to accelerated rates of growth in a developing economy. Based on a two-sectoral model involving exports and non-exports, a method is developed to measure the gains obtained through a reallocation of resources from the domestic to the external sector. The benefits from continued export expansion are found to decline over time. Cointegration tests confirm the long-run character of the estimated relationships. A simulation based on a dynamic, optimal control model illustrates the growth effects of different shocks and policies affecting the Korean export sector.

Suggested Citation

  • España, J.R., 1992. "Exports and economic growth. The gains from reallocation in Korea," UC3M Working papers. Economics 2834, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:2834
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    Keywords

    Export expansion;

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