Most trade-led growth strategies focus on exports. This article argues that they should not overlook imports for two main reasons. First, imports are an important determinant of export performance. Therefore, the success of an export-led growth strategy will be reduced if it only focuses on exports promotion and ignores barriers to imports. Second, there is abundant evidence that imports also foster productivity. Therefore, imports contribute to growth directly by stimulating productivity and indirectly by increasing export performance, making them a key component of a trade-led growth strategy. This article also elaborates on the channels through which imports affects growth and investigates if the export and growth impact of imports is limited to imports of goods.
Journal of World Trade