t the non price aspects of competition . . ., the more competitive a country is, the larger will be the value of ? and the smaller that of ?. Consequently, a high value of ? and a low value of ? could also be regarded as the success a country had in specializing in fast growing industries" (Bairam and Dempster, 1991, p. 1720
3. In an "open economy relevant economic management is the one that manipulates the income elasticities of exports and imports. A successful policy that increases the value of ? and/or reduces the value of ?, relaxes the balance of payments constraints and, eventually, accelerates economic growth within an economy. The Harrod foreign trade multiplier was developed on the basis of data applicable to large, developed economies. Most of the econometric research concerning the Harrod foreign trade multiplier model deal with the performance or predicted performance of large, developed economies. Bairam and Dempster (1991, pp. 1719 1724), however, applied the
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