Economic Growth and Balance of Payments Problems
The approach to political economic planning for growth that is now almost traditional is to assume that import requirements will take such and such a course and that consequently the planners must provide for investment in export production to balance the future external accounts. There are, however, no particular reasons why investment in export production should improve the future balance of payments, unless it can be assumed that export investments are more profitable than other investments and that therefore savings will turn out larger as a result of export investment than as a result of other investment.
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