Is it Export- or Import-Led Growth? The Case of Kenya

The role of exports in promoting economic growth has been brought to the fore by the new wave of openness to trade as an economic strategy for development. Ideally, increased openness enables domestic producers to access the larger market for domestic goods, facilitating economies of scale in producing goods and services Promoting exports encourages specialization and learningby-doing, increasing productivity in the tradable sector and the entire economy The improvement in productivity increases the competitiveness and profitability of enterprises. This provides incentives for domestic producers to increase production. In this regard, increasing exports fosters economic growth.