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erences in the rate of growth of factor supplies and technical progress.1 According to Thirlwall (1997, p. 380), ‘[t]here are not many countries in the world, particularly developing countries, that could not utilize (or generate) more domestic resources given the greater availability of foreign exchange . . . and the fundamental importance of exports as a component of demand is that it is the only component that can provide the foreign exchange to pay for the import content of other components of demand—consumption, investment, and government expenditure’ (original emphasis).

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