Export and Economic Growth

Economics is what the bulk of the countries are concerned with at the current stage of social development. The recent trends in global economics prove the fact that the liberalization of trade and export orientation of the economy might be the factors that facilitate the economic growth in the countries that adopt these policies. The recent examples of this are China, India, and Brazil, the countries that have achieved incredible progress in their economic development over the recent decade. Their export-oriented economies dominate the world at the moment.

First of all, China is currently presented as a developmental role model for all developing countries due to its proven ability to develop a strong economy, provide domestic goods’ producers with a favorable working environment and tax climate, and ensure the full extent of the export of the products manufactured (Collier, 2002, p. 23). As a result, the domestic needs of various industrial and consumer products are satisfied by the Chinese manufacturers and the economy benefits from the export of the products whose manufacturing price is rather low, but selling price abroad is several times higher.

Another example of the positive influence of export orientation on economic growth in India. The country that obtained its independence from the United Kingdom only four decades ago is now one of the dominant forces in the world economy. Currently, India is one of the most popular outsourcing locations due to the favorable tax climate observed in the country (Collier, 2002, p. 27). The same conditions make it possible for Indian manufacturers to produce goods at low costs and export them at higher prices so that the manufacturers and the country’s economy could benefit.

The most recent example of the positive influence of the export oriented economy on the country’s development is Brazil. While at the 1990s the world was wondering about the miracle that China and India managed to do with their formerly closed and depressive economies, Brazil developed its industrial potential and in the late 1990s it coped with the task of becoming one of the world’s fastest developing economies (Collier, 2002, p. 30). Currently the amount of the exports of Brazil outweighs the figures of all other Latin American countries put together, while Brazil mainly focuses on developing its industry and agriculture and exporting their products.

Drawing from this, it becomes evident that the export oriented trade is the main factor facilitating the economic growth of any country in the modern human society. The examples of China, India, and Brazil prove that the developing countries can quickly become rather powerful in the economic aspect, only in case if they implement proper economic policies. Although certain issues can be observed in China, India, and Brazil, these countries are bright examples of the export-conditioned economic growth.

References

Collier, P. (2002). Globalization, Growth, and Poverty. World Bank Publications.

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NerdyTom. 2021. "Export and Economic Growth." November 13, 2021. https://nerdytom.com/export-and-economic-growth/.

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NerdyTom. (2021) 'Export and Economic Growth'. 13 November.

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