Country A is a lesser developed country. How can its govt stimulate economic growth?

Learning Goal: I’m working on a developmental economics discussion question and need guidance to help me learn.


  • Reduction in restriction to trade. This includes reduction in tariffs and quotas. The promotion of free trade would open a market for the products of country A globally. An increase in exports would have a positive effect on the growth of the nation.
  • Liberalizing the economic policies. Privatization of resources and the prevalence of the free market would lead to economic growth.
  • Adapting to the latest technologies, purchasing high-end machines from foreign nations to increase the output.
  • Increase in investment not only by the domestic firms but also by getting foreign investors to invest in country A would rapidly increase the economic growth.
  • The focus should be shifted from the agricultural sector to the industrial sector. More employment should be generated that would increase the AD (aggregate demand) of the nation, thereby increasing the economic growth.
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