The Export-Led Growth Model Essay Example | Topics and Well Written Essays - 1750 words

The Export-Led Growth Model - Essay Example China’s model is rooted in the double transition of demographic and structural transformation. China economy has tremendously managed the double-digit growth rates from the period when it began economic transformation. This enabled the country to move from a planned to a mixed economy where the market plays the significant roles in resource allocation. Thus, despite the political, social and economic problems associated with the rapid growth in China economies, export-led growth has tremendously enabled China to increase their profitability levels, balance their finances, exceed their debts and trigger their export growth rate.Export-led growth model have been successful in many economies that employ this model for creating economic transformation. The export-led model is significant because it has enabled many economies to increase their profitability levels, balance their finances and exceed their debts. China has benefited from the export-led model since they started using it because this model has enabled them to increase their profitability levels. China was ranked the second largest economies that have emerged and improved in terms of economic performance in the global market. This model has not only enabled them to increase their profitability level but also to balance their finances; thus enabling China to emerge as the successful economies in Asian markets.It has also triggered export growth rate in the China market; thus creating higher export levels.... This model has not only enabled them to increase their profitability level but also to balance their finances; thus enabling China to emerge as the successful economies in Asian markets. It has also triggered export growth rate in the China market; thus creating higher export levels in a rising spiral cycle. For instance, the GDP (Gross Domestic Products) in China market expanded by 2%, in the year 2012 and indicated in figure 1 below. Historically, the GDP average rate was 2.06% from 2011 and the record indicated the 1.50 % low in 2012 as indicated in figure1 below. China is one of the second economies after the United States that has improved their export rate in the global market. China has varied industries that export multiple products to diverse countries across the globe. The rise of population growth rate has enabled them to improve their economic performance because of rich markets because of both rich markets both in the domestic and the international markets. For instance, the National Bureau of Statistics of China reveals that the GDP for the China economy was 51,932.2 billion in the year 2012; thus contributing to economic expansion of 7.9 percent. Figure 1: GDP Growth Rate in China markets The implementation model of export-led growth has significantly contributed to increased rapid growth in the China markets. For the last three decades, China economy has grown to the average rates, which exceed 9%; thus, it is widely admired by other nations (Razmi 2008, p. 1). Furthermore, the growth has been accompanied by the reduction levels in poverty; thus enabling the China market to be ranked among the leading and emerging economies in the Asian nations. However, the trajectory of rapid growth in China has created political, social made