Export-Led Growth Strategies. Many countries believe that they need to increase exports in order to grow. Some of this belief is based on long-run considerations, as competing in export markets may...

Export-Led Growth Strategies. Many countries believe that they need to increase exports in order to grow. Some of this belief is based on long-run considerations, as competing in export markets may induce their firms to innovate. But some countries also focus on the short-run benefits. What are these benefits? (Related to Application 4 on page 269.)