New Directions in the World Economy by Bela Balassa (auth.)

By Bela Balassa (auth.)

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These developments are closely linked to the policies applied by the various countries. The Far Eastern NICs began a policy of outward orientation10 in the early 1960s and continued with this policy afterwards. The South Asian NICs, however, persisted with highly protectionist inwardoriented policies. In the North Africa-Middle East area, the unfavorable results were dominated by Egypt that failed to productively utilize the bonanza provided by increased oil earnings, toll receipts from the Suez Canal, and workers' remittances from the Middle East.

Balassa, 'Exports, Policy Choices, and Economic Growth in Developing Countries after the 1973 Oil Shock,' Journal of Development Economics, XVIII (1985) pp. 23-35. External shocks refer to the effects of the slowdown in the growth of world exports and changes in the terms of trade. Among policy responses to these shocks, export promotion is represented by changes in export market shares; import substitution refers to decreases in the income elasticity of import demand; and additional net external financing has been derived by extrapolating past trends in such financing.

28, (Washington, DC: Agency for International Development, 1973). B. Balassa and Associates, Development Strategies in Semi-Industrial Countries, Ch. 7. B. Balassa, 'Exports, Policy Choices, and Economic Growth in Developing Countries after the 1973 Oil Shock,' Journal of Development Economics, XVIII (1985) pp. 23-35. External shocks refer to the effects of the slowdown in the growth of world exports and changes in the terms of trade. Among policy responses to these shocks, export promotion is represented by changes in export market shares; import substitution refers to decreases in the income elasticity of import demand; and additional net external financing has been derived by extrapolating past trends in such financing.

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