Brief Introduction

Every country realizes the importance of economic growth to become a developed country. The extremely complex process of economic growth is dependent upon a large number of variables such as trade and price fluctuation, political ups and downs, economic factors and capital accumulation, etc.

The export-led growth hypothesis describes that growth in exports of a country is an important factor to the economic growth of the Country. The hypothesis amplifies that the overall growth of economies does not only depend upon an increase in labor and capital stock but also on growth in exports.

The competitiveness in the global market leads to the production of innovative products and making able the local producers in meeting competition in the global market. The contribution of various countries in the global trade state a highly significant relationship between two variables, expansion in exports and growth in economic activity. Many studies confirm that there is a powerful relation between said variables.