Complementarity of Trade and FDI Liberalization in Industrial Growth: Lessons from Sri Lanka
AbstractThis paper examines industrialisation experience in Sri Lanka following the market-oriented policy reforms initiated in 1977, with emphasis on the complementarity of trade and foreign direct investment (FDI) policies in shaping the reform outcome. It is found that the reforms helped to transform a primary product exporting economy into one in which manufactures dominate exports. Improved performance of domestic manufacturing through greater export orientation saw improvement in output and total factor productivity growth, and employment generation. The Sri Lankan experience highlights the complementary role of investment liberalisation for exploiting the potential gains from trade liberalisation. This industrialisation outcome is particularly impressive given that it occurred during a period of persistent civil strife and macroeconomic instability.
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Bibliographic InfoPaper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2004-10.
Date of creation: 2004
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Harberger, Arnold C., 1996. "Reflections on economic growth in Asia and the Pacific," Journal of Asian Economics, Elsevier, vol. 7(3), pages 365-392.
- Nayyar, Deepak, 1978. "Transnational Corporations and Manufactured Exports from Poor Countries," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 88(349), pages 59-84, March.
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- Garry Pursell & F.M. Ziaul Ahsan, 2011. "Sri Lanka's Trade Policies: Back to Protectionism," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2011-03, The Australian National University, Australia South Asia Research Centre.
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