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EXPORTS AND ECONOMIC GROWTH: Further Evidence from Asian LDCs
Authors: Pradurnna B. RANA*
Number of views: 315
Fueled by the adverse conditions in the current international economic environment, the debate concerning the relative merits of development strategies based on import-substitution or export-oriented policies, is starting anew. This paper re-estimates Feder's (1982) model using data from fourteen Asian LDCs during 1965·1982 and finds that, although the social marginal factor productivities in the export sector declined significantly in the post-1973 period providing some support for the elasticity pessimism argument, they were, nevertheless, higher than in the non-export sector. This suggests that despite the deterioration of the international economy, reallocation of the export sector from the non-export sector could have increased growth rates.