In this article we will discuss about:- 1. Reasons for the Adoption of Manufacturing Export-Led Growth Model 2. Success of Manufacturing Export-Led Growth in Japan, South Korea and East Asian Countries 3. Demand Linkages. After the Second World War many underdeveloped countries attained freedom from the colonial rule. They were now free to decide about the appropriate trade strategy. They [...]
Following factors account for the primary export-led growth in some countries: 1. Efficient Allocation of Existing Resources 2. Inflow of Foreign Capital 3. Linkage Effects. Factor # 1. Efficient Allocation of Resources: When a country which is isolated from other countries is opened to trading with other countries of the world, it will specialise in the production of those goods [...]
Contrary to the effect of exports on stimulating growth in the presently developed countries such as the US, Canada and Australia, the expansion of primary exports in the underdeveloped countries prior to 1950 did not transmit growth to the other sectors of the economy failed to achieve widespread development in these countries. As a result, many countries of Asia and [...]