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Exports of Manufactures by Developing Countries: Emerging Patterns of Trade and Location

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Author Info
Lall, Sanjaya

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Abstract

Developing countries are rapidly increasing their shares of manufactured trade, not just in labour-intensive products, but also in capital- and skill-intensive ones; their shares are rising particularly rapidly in the high-technology area. However, manufactured exports remain highly concentrated in the developing world, with a few countries dominating all forms of export. Within the successful exporting countries, there are significant differences in the 'technology content' of exports. These trends are difficult to explain with received trade theory, even taking human capital into account, or with reference to broad economic policies: it is useful to bring in 'learning,' along with scale economies, increasing returns, and agglomeration as determinants of comparative advantage. These factors imply market failures, and so a role for policy in developing genuine comparative advantages. This article suggests that emerging trade and location patterns in the developing work are explained by market imperfections and government policies to overcome them. Copyright 1998 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 14 (1998)
Issue (Month): 2 (Summer)
Pages: 54-73
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Handle: RePEc:oup:oxford:v:14:y:1998:i:2:p:54-73

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  1. Westphal, Larry E., 2000. "Industrialization Meets Globalization : Uncertain Reflections on East Asian Experience," Discussion Papers 8, United Nations University, Institute for New Technologies. [Downloadable!]
  2. Arslan Razmi, 2006. "Pursuing Manufacturing-BasedExport-Led Growth: Are Developing Countries Increasingly Crowding Each Other Out?," Working Papers 2006-05, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  3. Klinger, Bailey & Lederman, Daniel, 2004. "Discovery and development : an empricial exploration of"new"products," Policy Research Working Paper Series 3450, The World Bank. [Downloadable!]
  4. Sanjaya Lall, . "FDI and Development: Policy and Research Issues in the Emerging Context," QEH Working Papers qehwps43, Queen Elizabeth House, University of Oxford. [Downloadable!]
  5. Arslan Razmi, 2009. "Must Improved Labor Standards Hurt Accumulation in the Targeted Sector? Stylized Analysis of a Developing Economy," Working Papers 2009-09, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  6. Arslan Razmi & Robert A. Blecker, 2006. "Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?," Working Papers 2006-06, American University, Department of Economics. [Downloadable!]
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  7. Ian Goldin & Kenneth Reinert, 2005. "Global capital flows and development: A Survey," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 14(4), pages 453-481, December. [Downloadable!] (restricted)
  8. Charles Becker & Terry-Ann Craigie, 2007. "W. Arthur Lewis in Retrospect," The Review of Black Political Economy, Springer, vol. 34(3), pages 187-216, December. [Downloadable!] (restricted)
  9. Jörg Mayer & Arunas Butkevicius & Ali Kadri, 2002. "Dynamic Products In World Exports," UNCTAD Discussion Papers 159, United Nations Conference on Trade and Development. [Downloadable!]
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  10. Crafts, Nicholas & Venables, Anthony J., 2001. "Globalization in History: A Geographical Perspective," CEPR Discussion Papers 3079, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Alka Chadha, 2005. "Product cycles, innovation and exports: A study of Indian pharmaceuticals," Departmental Working Papers wp0511, National University of Singapore, Department of Economics. [Downloadable!]
  12. Sanjaya Lall, . "The Technological Structure and Performance of Developing Country Manufactured Exports, 1985-1998," QEH Working Papers qehwps44, Queen Elizabeth House, University of Oxford. [Downloadable!]
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  13. Ozgul Bilici & Erkan Erdil & I. Hakan Yetkiner, 2008. "The Determining Role of EU in Turkey's Trade Flows: A Gravity Model Approach," Working Papers 0806, Izmir University of Economics. [Downloadable!]
  14. Sanjaya Lall, . "Selective Industrial and Trade Policies in Developing Countries: Theoretical and Empirical Issues," QEH Working Papers qehwps48, Queen Elizabeth House, University of Oxford. [Downloadable!]
  15. Amir Mahmood, 2004. "Export Competitiveness and Comparative Advantage of Pakistan’s Non-agricultural Production Sectors: Trends and Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 541–561. [Downloadable!]
  16. Sanjaya Lall, . "Turkish Performance in Exporting Manufactures: A Comparative Structural Analysis," QEH Working Papers qehwps47, Queen Elizabeth House, University of Oxford. [Downloadable!]
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