Indian Journal of Industrial Relations: Economics & Social Dev.

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Export Surplus & the Complementarities Among Countries:A Note


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1 Department of Economics, Panjab University Chandigarh - 160014, India
     

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There is nothing to be gained by exports surplus, unless it is important for bringing forth finance- led new investment opportunities that embody better supply responses. The causation should be: export surplus actualizes initial better supply responses, which in turn creates the Youngian external economies i.e. the possibility of further investments that are more productive. Interestingly, then advanced growth processes, enabled by this causation, also provides (in a sequential manner) the opportunity for the late comers to catch up – permits them to gainfully participate in international trade, which amounts not to static gains, but to experiencing a symbiotic exports and output growth relationship with trade balance, which could be true of their major trading partners.
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  • Export Surplus & the Complementarities Among Countries:A Note

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Authors

Satya Prasad Padhi
Department of Economics, Panjab University Chandigarh - 160014, India

Abstract


There is nothing to be gained by exports surplus, unless it is important for bringing forth finance- led new investment opportunities that embody better supply responses. The causation should be: export surplus actualizes initial better supply responses, which in turn creates the Youngian external economies i.e. the possibility of further investments that are more productive. Interestingly, then advanced growth processes, enabled by this causation, also provides (in a sequential manner) the opportunity for the late comers to catch up – permits them to gainfully participate in international trade, which amounts not to static gains, but to experiencing a symbiotic exports and output growth relationship with trade balance, which could be true of their major trading partners.

References