EXPORT GROWTH, ECONOMIC-GROWTH, AND DEVELOPMENT LEVELS - AN EMPIRICAL-ANALYSIS

The export-promotion development strategy has been advocated as a gene rally valid prescription for economic growth on the basis of econometr ic studies of the exports-growth relationships. A prominent shortcomin g of these studies is in the presupposition, intrinsic to them that ex ports-growth relationships hold similarly for all developing countries . This paper tests the hypothesis that the exports-growth relationship s vary with the developing countries' level of development. My results indicate that high export growth is most beneficial to developing cou ntries at intermediate stages of their development cycle, and conseque ntly suggest that the export-promotion development strategy is especia lly appropriate only for these countries.