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

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Author Info

  • Federico Bonaglia

    (OECD Development Centre)

  • Kichiro Fukasaku

    (OECD Development Centre)

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 condemns low-income countries to underdevelopment but can provide a basis for sustained export-led growth. Natural resource-based sectors have potential for export diversification. The OECD ‘mirror’ trade data indeed suggest that many different routes to diversification exist, including resource-based manufacturing and processing of primary products. However, these opportunities are far from 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 points to a mismatch between private sector’s needs and services actually provided and to a limited institutional development of the trade and investment support network. The lessons for trade capacity building are important for Africa but are also relevant for other low-income countries.

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File URL: http://128.118.178.162/eps/dev/papers/0307/0307001.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0307001.

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Length: 46 pages
Date of creation: 02 Jul 2003
Date of revision:
Handle: RePEc:wpa:wuwpdc:0307001

Note: Type of Document - Acrobat pdf; prepared on IBM PC; to print on HP; pages: 46 ; figures: included
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Web page: http://128.118.178.162

Related research

Keywords: export diversification; resource curse; Doha development agenda; trade capacity building; trade support services;

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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 McDermott, 2001. "The Long-Run Behavior of Commodity Prices: Small Trends and Big Variability," IMF Working Papers 01/68, International Monetary Fund.
  3. Agosin, M., 1997. "Export Performance in Chile: Lessons for Africa," Research Paper 144, World Institute for Development Economics Research.
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Citations

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Cited by:
  1. 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.
  2. Michael Jetter & Andrés Ramírez Hassan, 2013. "The roots of export diversification," DOCUMENTOS DE TRABAJO CIEF 010600, UNIVERSIDAD EAFIT.
  3. 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.
  4. Jens Andersson & Federico Bonaglia & Kiichiro Fukasaku & Caroline Lesser, 2005. "Trade And Structural Adjustment Policies In Selected Developing Countries," Development and Comp Systems 0507003, EconWPA.
  5. 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.
  6. Bamou, Ernest & Masters, William A., 2007. "Distortions to Agricultural Incentives in Cameroon," Agricultural Distortions Working Paper 48518, World Bank.
  7. Thierry Mayer, 2006. "Policy Coherence for Development: A Background Paper on Foreign Direct Investment," OECD Development Centre Working Papers 253, OECD Publishing.
  8. Schrank, Andrew, 2008. "Export Processing Zones in the Dominican Republic: Schools or Stopgaps?," World Development, Elsevier, vol. 36(8), pages 1381-1397, August.
  9. 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.
  10. 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.
  11. 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).
  12. 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.
  13. 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.
  14. Chandra, Vandana & Osorio Rodarte, Israel, 2007. "Options for Export Diversification and Faster Export Growth in Ghana," MPRA Paper 18539, University Library of Munich, Germany.
  15. repec:nrb:journl:v:21:y:2009:p:3 is not listed on IDEAS
  16. 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).

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