Page 524 - 2016 - Vol. 40

that growth in real exports tends to cause growth in real
GDP.

The link between exports and economic growth has
been closely studied by economic experts, mainly due to
the outcomes attained by a country's growth through
exports because of the results achieved by export-led
growth in some countries. The theoretical basis for
achieving growth through the development of export
industries is that competition on an international scale
requires efficiency, innovation and investment, all of which
may encourage economic growth within a country. The
source for realizing development through rise in
exportation of goods is that success in the global market
entails proficiency and modernization. The development of
export can lead to economies of scale as industries expand
and develop their markets overseas in response to foreign
demand. Industries may promote world-class skills in
product design, research and development and marketing,
which increase their export capacity and promote economic
development in their own country. The promotion of
international trade leads to free trade policies that promote
exports from the country and attract direct foreign

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