Handbook of Alternative Theories of Economic Growth
Show Less

Handbook of Alternative Theories of Economic Growth

Edited by Mark Setterfield

Comprising specially commissioned essays, the Handbook provides a comprehensive overview of alternative theories of economic growth. It surveys major sub-fields (including classical, Kaleckian, evolutionary, and Kaldorian growth theories) and highlights cutting-edge issues such as the relationship between finance and growth, the interplay of trend and cycle, and the role of aggregate demand in the long run.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 19: Export-led Growth, Real Exchange Rates and the Fallacy of Composition

Robert A. Blecker and Arslan Razmi


Robert A. Blecker and Arslan Razmi 1 Introduction In the past two decades, developing countries have significantly increased both their export orientation and the proportion of their exports that consists of manufactured goods.1 These shifts have been driven by several motivations, including the perceived inefficiencies of inward-oriented, import-substitution industrialization, a desire to avoid the historically recurring problem of falling terms of trade for primary commodities and a belief that manufactures offer superior long-run development prospects compared to primary commodities. The increasing reliance on manufactured export-oriented growth strategies has had some stunning successes, particularly in the so-called “four tigers” (South Korea, Taiwan, Hong Kong and Singapore) in the 1970s and 1980s and China in the 1990s and early 2000s. Nevertheless, for a large number of countries that have sought to jump on this bandwagon, the results have been disappointing. While a small group of East Asian nations have used manufactured exports to propel themselves into a process of convergence with the industrialized economies of the global “North”, most of the countries in the “South” that have specialized in manufactured exports over the past two decades have not achieved similar success. The uneven growth performance of the developing countries most specialized in manufactured exports in the past three decades is shown in Table 19.1. The growth of the four tigers (“newly industrialized Asian economies”), which averaged 7.7 percent per year in the 1980s, slowed down in the 1990s and 2000s, when many other developing countries began to enter the market for manufactured...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.