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Breaking Into New Markets

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Author Info

  • Richard Newfarmer
  • William Shaw
  • Peter Walkenhorst

Abstract

This book takes a fresh look at export diversification. It concludes that much of the recent literature, though novel, has focused excessively on simply adding new products to export portfolios. One branch of these studies centers on the 'discovery' of exports, and it argues that the threat of entry (imitation) leads to an underinvestment in bringing new products to the global market. Another analytical branch focuses on changing the contents of an export portfolio to mirror the exports of countries with higher incomes on the grounds that these lead to higher productivity. Both strands implicitly point to the need for careful yet active government policies. While such policies are important, this book argues for a more comprehensive view of diversification and hence a more comprehensive trade policy strategy-one that takes into account improving the quality of existing exports, breaking into new geographic markets, and increasing services exports. This publication has been tailored to policy makers, their staffs, and the international development community at large. It is a collection of short articles that summarize major issues and policies on particular topics. Many of the chapters are digests of more formal studies but are presented here with a minimum of underlying econometric and theoretical detail of less interest to policy makers. As the World Bank increases its efforts on 'aid for trade,' Staff are working with countries to help diversify their exports. Along with other development partners, the Bank is providing enhanced assistance to improve competitiveness, facilitate trade, improve trade-related services, and exploit regional and multilateral initiatives to open markets for developing countries. This book makes a substantial contribution to the efforts of developing countries to use the global economy to spur growth and reduce poverty.

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Bibliographic Info

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This book is provided by The World Bank in its series World Bank Publications with number 2616 and published in 2009.

ISBN: 978-0-8213-7637-9
Handle: RePEc:wbk:wbpubs:2616

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Postal: 1818 H Street, N.W., Washington, DC 20433
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Web page: https://openknowledge.worldbank.org
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Related research

Keywords: Health; Nutrition and Population - Health Monitoring and Evaluation Urban Development - Urban Services to the Poor Water Resources - Water and Industry Environment - Environmental Economics & Policies Health; Nutrition and Population;

References

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  1. Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(4), pages 578-599, August.
  2. Johannes Fedderke & Željko Bogetic, 2005. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," Working Papers 39, Economic Research Southern Africa.
  3. Olivier CADOT & Céline CARRERE & Vanessa STRAUSS-KHAN, 2007. "Export Diversification:What’s behind the Hump?," Working Papers 200724, CERDI.
  4. Sadao Sakakibara & Barbara B. Flynn & Roger G. Schroeder & William T. Morris, 1997. "The Impact of Just-in-Time Manufacturing and Its Infrastructure on Manufacturing Performance," Management Science, INFORMS, vol. 43(9), pages 1246-1257, September.
  5. Eschenbach, Felix & Hoekman, Bernard, 2006. "Services Policy Reform and Economic Growth in Transition Economies, 1990-2004," CEPR Discussion Papers 5625, C.E.P.R. Discussion Papers.
  6. Felix Eschenbach & Bernard Hoekman, 2006. "Services Policy Reform and Economic Growth in Transition Economies," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 746-764, December.
  7. Hummels, David, 2001. "Time as a Trade Barrier," GTAP Working Papers 1152, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  8. James E. Rauch, 1996. "Networks versus Markets in International Trade," NBER Working Papers 5617, National Bureau of Economic Research, Inc.
  9. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
  10. Peter K. Schott, 2004. "Across-product Versus Within-product Specialization in International Trade," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 646-677, May.
  11. Röller, Lars-Hendrik & Waverman, Leonard, 2000. "Telecommunications Infrastructure And Economic Development: A Simultaneous Approach," CEPR Discussion Papers 2399, C.E.P.R. Discussion Papers.
  12. Shepherd, Ben & Wilson, John S., 2006. "Road infrastructure in Europe and Central Asia : does network quality affect trade ?," Policy Research Working Paper Series 4104, The World Bank.
  13. John Fernald, 1997. "Roads to prosperity? assessing the link between public capital and productivity," International Finance Discussion Papers 592, Board of Governors of the Federal Reserve System (U.S.).
  14. Arnold, Jens & Javorcik, Beata S. & Mattoo, Aaditya, 2007. "Does services liberalization benefit manufacturing firms ? Evidence from the Czech Republic," Policy Research Working Paper Series 4109, The World Bank.
  15. Kornai, J, 1979. "Resource-Constrained versus Demand-Constrained Systems," Econometrica, Econometric Society, vol. 47(4), pages 801-19, July.
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