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On the Condition for Export-Led Growth

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  • Edward F. Buffie

Abstract

In this paper, the author explores the conditions under which favorable export shocks produce export-led growth in a three-sector, three-factor, general equilibrium model that allows for endogenous capital accumulation. The export shock takes the form of either a resource discovery or an increase in the world market price of the export good. While surprisingly simple conditions define the outcome in many cases, there is no general presumption that an export boom will act as an engine of growth; much depends on the precise structural characteristics of the economy.

Suggested Citation

  • Edward F. Buffie, 1992. "On the Condition for Export-Led Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 211-225, February.
    • Handle: RePEc:cje:issued:v:25:y:1992:i:1:p:211-25
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