An investigation of the export expansion hypothesis

The present study examines the appropriate development strategies for industrially advanced and developed nations utilising the earlier research of Alfred Maizels. As before, the basic model used is the ‘ex‐ante’ model developed by Hollis Chenery and Alan Strout. The results support the ‘Export Expansion’ hypothesis which emphasises the importance of exports as a source of savings and as a catalyst for economic development for both highly developed and less developed countries. Gross Domestic Product, Non‐export Gross Domestic Product, and exports are used to explain savings in 11 less developed countries and six developed countries.