Title: Export-Led Growth Strategies Through History
Headings: Export-Led Growth Strategies Through History
Export-Led Growth Strategies Through History
What Is an Export-Led Growth Strategy?
Key Takeaways
Understanding Export-Led Growth
The Era of Export-Led Growth
Example of Export-led Growth
Fast Fact

Content: Perhaps this is partly due to its greater use of import tariffs, stricter capital controls, and its strategic skill in adopting foreign technology to build its own domestic technological infrastructure. Regardless, China was dependent on MNCs around 2011, when 52.4% of Chinese exports come from foreign-owned firms, and those firms accounted for 84.1% of trade surplus. 5 ﻿
More recently, the threat of a trade war between the United States and China have caused MNCs based in China to rethink their positions. On the one hand, they face possible disruption to operations in China and a possible lack of inputs. On the other hand, relocating to other low wage countries is not ideal because countries such as Vietnam and Cambodia lack the technological capabilities and human skill sets that China possesses. Fast Fact
China's GDP growth rate dropped from over 10.6% in 2010 to 6% in 2019. 6 ﻿ The drop in growth is due to the democratization of GDP growth as countries worldwide have followed export-led strategies. While export-led growth in its various guises has been the dominant economic development model since the 1970s, there are signs that its effectiveness may be exhausted. The export paradigm depends upon foreign demand and, since the global financial crisis in 2008, developed nations have not regained strength to be the main supplier for global demand. Further, emerging markets are now a much greater share of the global economy making it hard for all of them to pursue export-led growth strategies—not every country can be a net exporter.