immiserizing growth

English - English

Definition of immiserizing growth in English English dictionary

(Ekonomi) Immiserizing growth is a situation first proposed by Jagdish Bhagwati, in 1958, where economic growth could result in a country being worse off than they were before growth. If growth is heavily export biased it will lead to a fall in the terms of trade of the exporting country, in rare circumstances this fall in the terms of trade may be so large as to outweigh the gains from growth, this situation would cause a country to be worse off after growth than before. This result is only valid if the growing country is able to influence world prices