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Export Diversification in Low-Income Countries: An International Challenge After Doha

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  • Federico Bonaglia
  • Kiichiro Fukasaku

Abstract

This paper discusses major policy issues related to commodity dependence and export diversification in low-income countries. Contrary to some widely-held view, it argues that natural resources are not necessarily a “curse” — that they do not condemn low-income countries to underdevelopment but can provide rather a basis for sustained export-led growth. Natural resource-based sectors have potential for export diversification. The OECD “mirror” trade data suggest that many different routes to diversification exist, including resource-based manufacturing and processing of primary products. However, these opportunities are not being exploited in many low-income countries. This is because export diversification is typically a slow process, and this process needs to be sustained by an appropriate and coherent strategy, characterised by a combination of vision, co-ordination and management of conflicting interests. Moreover, the analysis of trade support services in two African countries ... Les principaux problèmes liés à la dépendance vis-à-vis des produits de base et à la diversification des exportations dans les pays à faibles revenus sont abordés dans ce Document technique. Contrairement à une opinion largement répandue, les ressources naturelles ne sont pas nécessairement une “tare” — elles ne condamnent pas les pays pauvres au sous-développement, mais peuvent au contraire constituer la base d’une croissance durable tirée par les exportations. Les secteurs liés aux ressources naturelles disposent d’un potentiel de diversification à l’exportation. Il ressort des données sur les échanges de l’OCDE que les voies de la diversification sont nombreuses et variées, notamment les activités de transformation des produits primaires et les activités manufacturières à base de ressources naturelles. Toutefois, ces possibilités ne sont pas exploitées dans de nombreux pays à faibles revenus. En effet, la diversification des exportations est un processus lent, qui doit être ...

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 209.

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Date of creation: Jun 2003
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Handle: RePEc:oec:devaaa:209-en

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References

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  1. Blomström, Magnus & Kokko, Ari, 2002. "From Natural Resources to High-Tech Production: The Evolution of Industrial Competitiveness in Sweden and Finland," EIJS Working Paper Series 139, The European Institute of Japanese Studies.
  2. Paul Cashin & C. John McCDermott, 2002. "The Long-Run Behavior of Commodity Prices: Small Trends and Big Variability," IMF Staff Papers, Palgrave Macmillan, vol. 49(2), pages 2.
  3. Agosin, M., 1997. "Export Performance in Chile: Lessons for Africa," Research Paper 144, World Institute for Development Economics Research.
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Cited by:
  1. Jorge Braga de Macedo & Luís Brites Pereira, 2014. "Cape Verde and Mozambique as Development Successes in West and Southern Africa," NBER Chapters, in: African Successes: Sustainable Growth National Bureau of Economic Research, Inc.
  2. Jonathan Munemo, 2011. "Foreign aid and export diversification in developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(3), pages 339-355.
  3. Bhubanesh Pant Ph.D. & Rajan Krishna Panta, 2009. "Export Diversification and Competitiveness: Nepal’s Experiences," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 21, pages 52-78, April.
  4. Wim Naudé & Riaan Rossouw, 2011. "Export diversification and economic performance: evidence from Brazil, China, India and South Africa," Economic Change and Restructuring, Springer, vol. 44(1), pages 99-134, April.
  5. Paula Gracinda Santos & Ana Paula Ribeiro & Vitor Manuel Carvalho, 2013. "Export-led growth in Europe: Where and what to export?," FEP Working Papers 479, Universidade do Porto, Faculdade de Economia do Porto.
  6. Jens Andersson & Federico Bonaglia & Kiichiro Fukasaku & Caroline Lesser, 2005. "Trade and Structural Adjustment Policies in Selected Developing Countries," OECD Development Centre Working Papers 245, OECD Publishing.
  7. Chandra, Vandana & Osorio Rodarte, Israel, 2007. "Options for Export Diversification and Faster Export Growth in Ghana," MPRA Paper 18539, University Library of Munich, Germany.
  8. Amurgo-Pacheco, Alberto & Pierola, Martha Denisse, 2008. "Patterns of export diversification in developing countries : intensive and extensive margins," Policy Research Working Paper Series 4473, The World Bank.
  9. repec:nrb:journl:v:21:y:2009:p:3 is not listed on IDEAS
  10. Naude, Wim & Rossouw, Riaan, 2008. "Export Diversification and Specialization in South Africa: Extent and Impact," Working Paper Series RP2008/93, World Institute for Development Economic Research (UNU-WIDER).
  11. Michael Jetter & Andrés Ramírez Hassan, 2013. "The roots of export diversification," DOCUMENTOS DE TRABAJO CIEF 010600, UNIVERSIDAD EAFIT.
  12. Deere Carolyn, 2005. "International Trade Technical Assistance and Capacity Building," Human Development Occasional Papers (1992-2007) HDOCPA-2005-05, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
  13. World Bank, 2007. "Ghana - Meeting the Challenge of Accelerated and Shared Growth : Country Economic Memorandum, Volume 1. Background Papers," World Bank Other Operational Studies 7661, The World Bank.
  14. Bamou, Ernest & Masters, William A., 2007. "Distortions to Agricultural Incentives in Cameroon," Agricultural Distortions Working Paper 48518, World Bank.
  15. Thierry Mayer, 2006. "Policy Coherence for Development: A Background Paper on Foreign Direct Investment," OECD Development Centre Working Papers 253, OECD Publishing.
  16. Schrank, Andrew, 2008. "Export Processing Zones in the Dominican Republic: Schools or Stopgaps?," World Development, Elsevier, vol. 36(8), pages 1381-1397, August.

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