Export-Led Growth

Export-Led Growth and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Export-Led Growth: A macroeconomic strategy focusing on expansion of the export sector –such as through export subsidies or competitive devaluation –as a way of boosting economic growth while avoiding the inflationary consequences of higher domestic spending. Especially if coupled with higher import barriers, such an approach can be a form of beggar-thy-neighbor policy. Moreover, by targeting export industries for expansion, resources are diverted from industries producing for the home market, with the result that industrial self-sufficiency may be delayed.