International trade and long term economic growth: a few issues on growth strategies for India

Abstract

For developing economies, technological change and micro level efficiency is as important as capital accumulation as a source of long term economic growth. International trade is an important source of incentives in generating both intentional and by-product technological change by increasing aggregate economic activity (market size) and competitive conditions. In the present context, selective policy intervention on the production side may provide cutting edge in realizing dynamic gains through trade.