One problem with your explanation is that the Soviet Union did exactly that, and to no avail. Like, a major part of its manufacturing export was heavily subsidised. Sometimes, they sold it so cheap, that the buyer would literally recycle it straight away, at a fat lump profit

And no, my point is not that the "USSR was dumb". It could be ultra-efficient (at times) My point is that creating an export oriented manufacturing economy, let alone - consumer goods oriented one - that simply lies beyond the realm of possibilities of a state machine