Economics · International Economics
Which of the following correctly describes the concept of 'Immiserising Growth'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only primary commodity exporters can face immiserising growth.
- 2Import-substituting industrialisation always leads to immiserising growth.
- 3Growth that is strongly biased toward the export sector can worsen terms of trade so significantly that the country ends up worse off than before growth.✓
- 4A country's welfare improves as its export volume increases, irrespective of the terms of trade.
Correct answer
Growth that is strongly biased toward the export sector can worsen terms of trade so significantly that the country ends up worse off than before growth.
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