Export Expansion and Economic Growth in some Asian Economies: A Simultaneous-equation Model

Edward K. Y. Chen
Additional contact information
Edward K. Y. Chen: University of Hong Kong

Chapter 13 in Economic Growth and Resources, 1980, pp 284-293 from Palgrave Macmillan

Abstract: Abstract Export expansion as an engine of growth in both developed and developing economies has been widely discussed by economists since the early sixties. Kindleberger [11], Beckerman [3], and Lamfalussy [12] have attempted to provide some theoretical links between export expansion and economic growth, though none of them did actually formalise their arguments in the framework of growth models. Kindleberger argued that expanded exports offer investment opportunities and induce cost-reducing innovations and economies of large-scale production. In Beckerman’s hypothesis, the prospects of expanded exports motivate entrepreneurs to increase their investment rates and therefore output and productivity. Lamfalussy, on the other hand, stressed the importance of the balance of payments position of a country; he maintained that the achievement of a surplus in the balance of payments as a result of expanded exports would enable the government to follow expansionist policies which encouraged domestic investment. It is in fact an easy matter to derive a theoretical link between export expansion and income growth on the basis of the Harrod—Domar growth model. Ball [2] was among the first who attempted to extend the basic Harrod—Domar model to an open economy.

Keywords: Capital Good; Income Growth; Export Performance; Income Equation; Domestic Investment (search for similar items in EconPapers)
Date: 1980
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-04063-6_13

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349040636

DOI: 10.1007/978-1-349-04063-6_13

Access Statistics for this chapter

More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().