Yeah, that's the reason why people who do "nation building" saves do those loan farms (buying/contracting a bunch of players to loan to other clubs), it helps giving those clubs talent they wouldn't have access, but they are a nuisance to handle, i would never try these type of saves, the closely subsiding a league i ever did in FM was buying players for overprice.
I hope SI will improve the nation improvement system in FM 25 as currently things are way too static, making a league that was in the top 40 be top 10+ for 10 years should improve talent generation and sporting interest, the fact that things like game importance never change is absurd, doesn't matter how high you are able to bring the NT (even winning a few world cups) or getting players in your league earning millions of euros, it doesn't matter, the population in game world still doesn't find the career attractive so you remain a small pool of relative low ceiling good players being generated.
Of course, not the case with Scotland, they are a pretty good nation for youth only because they do have the base numbers to generate top talent.