Abstract
Abstract. The economic achievements of post- WWII Japan and Germany, the success of the Asian Four Tigers in the 1970s and 1980s, and the impressive growth of China, after adopting an export-led strategy in 1978, have caused many nations to view the export-ledmodel as the fastestroute to economic growth and financial stability. As a result, many governments started to promote and protect their countries’ exports,and mix politics, diplomacy and trade as well as seek greater access to friendly countries’ markets. Export-led development strategies, however, carry some risks, such as increased dependence on foreign markets and political forces that are beyond the exporters’ control. Global market forces, at times, cause export-dependent countries to have a sudden decline in their export revenues as the oil exporting countries have been experiencing as a result of a sharp decline in the world price of crude oil since 2014. This paper examines the main benefits, costs, and risks associated with export-led strategies, particularly as adopted by developing countries. It further explores the motives and risks faced by individual companies as they sell some of their products outside their home markets.
Keywords. Import substitution, Trade liberalization, Infant industries, Export promotion, Foreign investment, Export infrastructure.
JEL. F10, F16, F17, F41.References
Canuto, O., Haddad, M., & Hanson, G. (2010). The World Bank Economic Premise. [Retrieved from].
Domeneghetti, S., & Fiorentini, R. (n.d.). Three Essays on the Egyptian Economy. Universita’ DegliStudi Di Verona, Dipartimento Di Scienze Economiche, 973-987.
Donohue, T. (2016, July 2). Trump And Clinton Are Both Wrong About Trade. The Washington Post, A-15.
Dustmann, C. et al. (2014). From sick man of Europe to economic superstar: Germany’s resurgent economy. Journal of Economic Perspectives, 28(1), 167-188. doi. 10.1257/jep.28.1.167
Johnson, M. (2016). Export-Led Growth Strategies Through History. Investopedia. [Retrieved from].
Keegan, W., & Green, M. (2005). Global Marketing. New Jersey: Pearson.
Nelson, R., & Pack, H. (1999). The Asian miracle and modern growth theory. The Economic Journal, 109(457), 416-436. doi. 10.1111/1468-0297.00455
Palley, T. (2003). Export-Led Growth: Evidence of Developing-Country Crowding-Out. In Economic Integration, Regionalism, and Globalization, Arestis, Baddeley & McCombie (eds.). Cheltenham: Edward Elgar.
Palley, T. (2011). The Rise and Fall of Export-Led Growth. Working Paper #675. Levy Economics Institute of Bard College, New York, 1-21.
Rodrik, D. (2006). Goodbye Washington Consensus, Hello Washington Confusion. Journal of Economic Literature, 44(4), 973-987. doi. 10.1257/jel.44.4.973
Ronit, M., & Divya, P. (2014). The relationship between the growth of exports and growth of gross domestic product in India. International Journal of Business and Economics Research, 3(3), 135-139. doi. 10.11648/j.ijber.20140303.13
UN Department of Economic and Social Development (2007). Industrial Development in the 21st. century. [Retrieved from].
UNDP, (2011). Regional Integration and Human Development, New York.
US Department of Commerce, (2014). The Role Of Exports in the United States Economy, Washington, D. C., 1-14.
Yang, J. (2008). An Analysis So-Called Export-Led Growth. IMF Working Paper, WP/08/220, 1-24.
Yelwa, M., & Diyoke, K.O. (2013). An empirical investigation of export-led growth amongst some selected ECOWAS countries: An alternative to FDI? European Journal of Management Science and Economics, 1(1), 30-38.
Zambarkari, C. (2012). Underdevelopment and economic theory of growth: Case for infant industry Promotion, Consilience: The Journal of Sustainable Development, 8(1), 171-187.
