The Rise and Fall of Export-led Growth

Thomas Palley

Economics Working Paper Archive from Levy Economics Institute

Abstract: This paper traces the rise of export-led growth as a development paradigm and argues that it is exhausted owing to changed conditions in emerging market (EM) and developed economies. The global economy needs a recalibration that facilitates a new paradigm of domestic demand-led growth. Globalization has so diversified global economic activity that no country or region can act as the lone locomotive of global growth. Political reasoning suggests that EM countries are not likely to abandon export-led growth, nor will the international community implement the international arrangements needed for successful domestic demand-led growth. Consequently, the global economy likely faces asymmetric stagnation.

Keywords: Export-led Growth; Domestic Demand-led Growth; Economic Development; Stagnation (search for similar items in EconPapers)
JEL-codes: F00 F01 F02 F10 F20 F50 O11 O19 O24 (search for similar items in EconPapers)
Date: 2011-07
New Economics Papers: this item is included in nep-fdg, nep-opm and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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