Economic growth manifests itself in the accumulation of factors and technical progress. Such changes create impact upon trade through the variations in the pattern of production, consumption and the international terms of trade. In this article we will discuss about the production and consumption effects of growth on trade. Production Effects of Growth: As the process of economic growth facilitates [...]
In this article we will discuss about the theory of immiserising growth. The process of economic growth may bring about an increase in level of output in the growing economy and the wealth effect may even be positive but the deterioration in the terms of its trade may be so large that it more than offsets the positive wealth effect. [...]
Prof. W.W. Rostow, an eminent economic historian, has described the historical process of transition from underdevelopment to development in terms of a series of five stages of growth through which all countries must pass to reach the ultimate destination of a developed country'. These five stages of growth are: 1. The traditional society, 2. Preconditions for take-off, 3. The take-off [...]