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Productivity and externalities : models of export led growth

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  • de Melo, Jaime
  • Robinson, Sherman

Abstract

In developing countries, industrialization for successful export-led growth has been associated with rapid structural change and growth in productivity. Standard neoclassical growth models have difficulty explaining this change in performance. This paper has developed a simple analytical model incorporating export externalities that capture the large increases in the share of trade and total factor productivity that are associated with export-led growth. It also has developed a second model that breaks growth into its various components, which includes the effects of: (a) factor accumulation; (b) moving factors from areas of low productivity to area of high productivity; (c) exporting heavy and light manufactures; and (d) importing capital goods. The paper implements the second model with data from an archetypal semi-industrial country. The model accounts for the higher total factor productivity growth observed in countries pursuing export-led growth strategies. It also captures the pattern of structural change that such countries experience.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 387.

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Date of creation: 31 Mar 1990
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Handle: RePEc:wbk:wbrwps:387

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Related research

Keywords: Banks&Banking Reform; Achieving Shared Growth; Economic Theory&Research; Environmental Economics&Policies; Economic Growth;

References

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  1. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
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Citations

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Cited by:
  1. Diao, Xinshen & Diaz-Bonilla, Eugenio & Robinson, Sherman & Orden, David, 2005. "Tell me where it hurts, an' I'll tell you who to call," MTID discussion papers 84, International Food Policy Research Institute (IFPRI).
  2. Jie He & David Roland-Holst, 2010. "Economic Growth, Energy demand and Atmospheric Pollution: Challenges and Opportunities for China in the future 30 years," Cahiers de recherche 10-11, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  3. Hiro Lee & Robert F. Owen & Dominique van der Mensbrugghe, 2008. "Regional Integration in Asia and Its Effects on the EU and North America," OSIPP Discussion Paper 08E012, Osaka School of International Public Policy, Osaka University.
  4. Lewis, Jeffrey D. & Robinson, Sherman & Wang, Zhi, 1995. "Beyond the Uruguay Round: The implications of an Asian free trade area," China Economic Review, Elsevier, vol. 6(1), pages 35-90.
  5. Levine, Ross & Renelt, David, 1991. "Cross-country studies of growth and policy : methodological, conceptual, and statistical problems," Policy Research Working Paper Series 608, The World Bank.
  6. Corbo, Vittorio & Fischer, Stanley, 1991. "Adjustment programs and Bank support : rationale and main results," Policy Research Working Paper Series 582, The World Bank.
  7. Robinson, Sherman & Lewis, Jeffrey D., 1996. "Partners or predators? : the impact of regional trade liberalization on Indonesia," Policy Research Working Paper Series 1626, The World Bank.
  8. Hiro Lee & Michael G. Plummer, 2011. "Assessing the Impact of the ASEAN Economic Community," OSIPP Discussion Paper 11E002, Osaka School of International Public Policy, Osaka University.
  9. Mark Huberty & Georg Zachmann, 2011. "Green exports and the global product space: Prospects for EU industrial policy," Working Papers 556, Bruegel.
  10. Hiro Lee & Dominique van der Mensbrugghe, 2006. "Deep Integration and Its Impacts on Nonmembers: EU Enlargement and East Asia," Discussion Paper Series 184, Research Institute for Economics & Business Administration, Kobe University.
  11. Xiaoming Zhang & Heng-fu Zou, 1995. "Foreign technology imports and economic growth in developing countries," Policy Research Working Paper Series 1412, The World Bank.

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