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Economics

Provide viable explanations to illustrate the below.Immizerizing Growth

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter16: Economic Growth

Section: Chapter Questions

Problem 13E

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Question

Provide viable explanations to illustrate the below.
Immizerizing Growth

Expert Solution

Step 1

The immizerizing growth is proposed by Indian born American economist Jagdish Bhagwati in the year 1958.

Step 2

According the immizerizing growth theory, economic growth process (mainly export based) bring increase in total output and wealth effect become positive, but it worsen or create imbalances in the overall terms of trade. This trade imbalance leads to trade deficit. Thereby, there is a net decline in the welfare of nation.

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