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Structural Transformation and the sophistication of Production

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Author Info

  • Nicola Spatafora
  • Rahul Anand
  • Saurabh Mishra

Abstract

A new dataset on export sophistication reveals that in many countries the importance of modern services, and the sophistication of manufactured and service exports, has increased over time. However, this trend was less pronounced in LICs. Sophisticated sectors are more likely to act as a catalyst for broad-based economic growth, rather than turning into isolated enclaves, when the economy is liberalized, the exchange rate is not overvalued, and there are good information flows. An educated workforce, external liberalization, and good information flows are important prerequisites for developing sophisticated goods and services. An appropriate macroeconomic policy is particularly important for goods, skilled labor and good information flows for services.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 12/59.

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Length: 51
Date of creation: 01 Feb 2012
Date of revision:
Handle: RePEc:imf:imfwpa:12/59

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Keywords: Economic growth; Low-income developing countries; Manufacturing sector; Productivity; Services sector; service exports; manufactured exports; exports of goods; export basket; export baskets; service export; total exports; skilled labor; human capital; business services; export sector; international trade; recreational services; comparative advantage; technology exports; export services; export performance; goods export; cross-border exports; government services; services exports; service sector; trade in services; export duties; domestic market; international transactions; export ? led growth; export share; exporter; construction services; high-technology exports; levels of export; total export; export ratio; insurance services; export of goods; export service; exporters; marginal ? products; information services; global competitiveness; tariff barriers; foreign affiliates; service transactions; auxiliary services; use of intangible; tariff rate; financial services; royalty and license fees;

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References

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  1. Mishra, Saurabh & Lundstrom, Susanna & Anand, Rahul, 2011. "Service export sophistication and economic growth," Policy Research Working Paper Series 5606, The World Bank.
  2. Ejaz Ghani & Homi Kharas, 2010. "The Service Revolution," World Bank Other Operational Studies 10187, The World Bank.
  3. Escaith, Hubert, 2008. "Measuring trade in value added in the new industrial economy: statistical implications," MPRA Paper 14454, University Library of Munich, Germany.
  4. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
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Cited by:
  1. Flaaen, Aaron & Ghani, Ejaz & Mishra, Saurabh, 2013. "How to avoid middle income traps ? evidence from Malaysia," Policy Research Working Paper Series 6427, The World Bank.
  2. Shekhar Aiyar & Romain A Duval & Damien Puy & Yiqun Wu & Longmei Zhang, 2013. "Growth Slowdowns and the Middle-Income Trap," IMF Working Papers 13/71, International Monetary Fund.
  3. Rahul Anand & Saurabh Mishra & Shanaka J. Peiris, 2013. "Inclusive Growth," IMF Working Papers 13/135, International Monetary Fund.

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