Immiserizing growth is the situation in which the expansion of a country's exporting industry results in an increase in the world price of the exported good and an increase in the economic welfare of the country.

Question

Quizplus · Accepted Answer

Immiserizing growth occurs when the increase in the world price of the exported good is so large that it results in a decrease in the country's total economic welfare, despite an increase in the country's export revenue. Therefore, immiserizing growth results in a decrease in economic welfare, not an increase.

Immiserizing Growth Is the Situation in Which the Expansion of a Country's