ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Strategy of Export-Oriented Growth-A Theoretical Note

Use of export incentives to promote exports is typically justified by the following arguments:
(a) That a rise in exports enables the existing production units in the exports sector to increase the rate of utilisation of capacity or to create fresh capacity through the additional demand for such goods from the foreign market (b) That such a rise in export earnings enables the existing units of production in the domestic economy to create and utilise capacity by making it possible for them to make the necessary comple- mentary imports from abroad.

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