PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
Export-led Growth of Developing Countries and Optimal Trade Policy
| Author | Kazuhiko Yokota |
|---|---|
| Date of Publication | 2007. 3 |
| No. | 2007-08 |
| Download | 308KB |
Contents Introduction
Two models of learning-by-exporting are developed. Each addresses the rationale for a trade policy that protects infant domestic industries and shows that an export-led strategy for developing countries can reduce the optimal rate of subsidy. Furthermore, these models answer the question why the domestic price distortion in knowledgespillover economies, such as that in Hong Kong and Singapore will be corrected faster than in economies with a large agricultural sector, such as that in Thailand and Indonesia.