The high correlation between rapid growth in exports and rapid economic growth observed in several East Asia countries in recent decades
A) proves that export promoting trade policy leads to relatively rapid economic growth.
B) proves that a free-trade orientation of trade policy results in rapid economic growth.
C) proves that exports help growth, whereas imports impede growth.
D) proves that trade policy is the most important policy area for promotion of economic development.
E) does not prove that trade liberalization always leads to rapid economic growth.

Question

Quizplus · Accepted Answer

While the high correlation between rapid growth in exports and rapid economic growth in East Asia countries does suggest that promoting exports can contribute to economic growth, it does not necessarily mean that trade liberalization is always the best approach or that a free-trade orientation is the only way to achieve rapid economic growth. Other factors such as investment in infrastructure, education, and technological innovation also play important roles in promoting long-term economic growth.

The High Correlation Between Rapid Growth in Exports and Rapid