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In a theoretical situation, if growth is heavily export based, it might lead to a fall in the terms of trade of the exporting country. This concept and its proponent are

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MH SET 2026 Paper 1 Question Paper (25-Oct-2026)
The correct answer is

Immiserizing growth – Jagdish Bhagwati

When a country's growth is concentrated in its export sector, it offers much more of its export good on world markets. If the country is large enough to influence world prices, this extra supply lowers the price of its exports relative to its imports, i.e. its terms of trade fall.

Jagdish Bhagwati (1958) showed that this terms-of-trade loss can be so large that it outweighs the gain from higher output, so the growing country ends up worse off. He called this immiserizing growth. It is most likely when growth is export-biased, foreign demand for the export is price-inelastic, and the country depends heavily on trade.

The other pairs describe different ideas: trade diversion is Jacob Viner's customs-union concept (shifting imports to a higher-cost partner); trade creation is also Viner's concept, not Krugman's; and exchange controls are not the subject of Mundell's analysis of this situation.

Hence, the answer is Immiserizing growth – Jagdish Bhagwati.

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