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Article: Export-propelled growth: an empirical investigation of the role of foreign exchange. (Anthology)
- Article from:
- Atlantic Economic Journal
- Article date:
- June 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 Atlantic Economic Society. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Abundance of foreign exchange, whether resulting largely from increases in export earnings as assumed in this study or from capital inflows or reductions in imports, has been cited as a contributing factor to economic growth [Kader, American Economist, 1980; Hagen, Development and Planning, 1972; Esfahani, JDE, 1991]. The increase in the stock of foreign exchange is envisaged to stimulate capital formation and have a multiplier effect to propel growth. This role is also assumed by proponents of export-oriented policies and in empirical studies that have pointed to the positive impact of export expansion on economic growth of LDCs [Michalopoulos et al., A.I.D. Discussion ...