Gov. Intervention in Export-led Growth

Governments can play an important role in export-led growth, which involves promoting increased international trade and capital inflows. Governments can intervene by creating the right economic, social and legal conditions to attract foreign investors, providing incentives to domestic companies to export their goods and services, and investing in export-oriented infrastructure. The government can also intervene by removing barriers to trade, improving the competitiveness of domestic firms, and lowering transportation costs. Additionally, governments can provide financing to exporters through export-credit guarantees and currency stabilization funds, allowing them to more easily manage exchange rate risk. Finally, governments can manage foreign exchange policy, ensuring an appropriate exchange rate is maintained to support exports.