Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?
AbstractThis paper tests for a ‘fallacy of composition’ by analysing the demand for exports of the 18 developing countries that are most specialised in manufactures in the markets of the 10 largest industrial countries. Estimated export equations (both time-series and panel data) suggest that most developing countries compete with other developing country exporters rather than with industrialised country producers. A smaller number of countries that export more high-technology products compete with industrialised country producers and also have higher expenditure elasticities for their exports. Thus, the fallacy of composition applies mainly to the larger group of countries exporting mostly low-technology products.
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Bibliographic InfoPaper provided by American University, Department of Economics in its series Working Papers with number 2006-06.
Length: 46 pages
Date of creation: Apr 2006
Date of revision:
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Web page: http://www.american.edu/cas/economics/
Developing country exports of manufactures; intra-developing country competition; fallacy of composition; real exchange rates; technological ladder; adding-up constraint.;
Other versions of this item:
- Arslan Razmi & Robert Blecker, 2008. "Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 21-48.
- Arslan Razmi & Robert Blecker, 2005. "Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?," UMASS Amherst Economics Working Papers 2005-02, University of Massachusetts Amherst, Department of Economics, revised May 2006.
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-20 (All new papers)
- NEP-DEV-2006-05-20 (Development)
- NEP-REG-2006-05-20 (Regulation)
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