Exports and Economic Growth of East European Economies, 1996–2007

Shahdad Naghshpour and Bruno S. Sergi

Chapter 9 in Money, Banking and Financial Markets in Central and Eastern Europe, 2010, pp 179-196 from Palgrave Macmillan

Abstract: Abstract The argument whether export causes growth dates back to Ricardo and the comparative advantage. According to this theory, free trade increases the production of traded goods due to lower costs for each country. The assumption that the goods are ‘normal goods’ ensures that lower prices induced by increased production increase the utility of the citizens of each trading partner. Of course, in order to increase production in the export sector, the production of other sector(s) must be reduced. The ‘logical’ choice is therefore the production of imported goods. Needless to say, in order for trade to occur, the trading countries must engage in both the import and export of goods. The net effect of increased exports and imports is positive, resulting in increased production, which is defined as growth.

Keywords: Economic Growth; Gross Domestic Product; Intermediate Good; Domestic Investment; Gross National Product (search for similar items in EconPapers)
Date: 2010
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:pmschp:978-0-230-30221-1_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230302211

DOI: 10.1057/9780230302211_9

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().