COMPARATIVE ADVANTAGE, TRADE AND GROWTH - EXPORT-LED GROWTH REVISITED

This paper argues that the evidence in support of export promotion and export-led growth is not as strong as is sometimes suggested and that the effectiveness of such policies depends on both the level of development and the structure of exports. Employing cross-section analysis for a wide range of less-developed countries, we found a strong correlation between economic growth and the proportion of manufactures and stage three processed primary products. Moreover, the proportions of both manufactures and stage three items were also strongly correlated to the level of per capita income. Although not conclusive, these findings lend support to our contention. © 1991.