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Effects of Primary Exports on Industrial Exports and GDP: Empirical Evidence


  • Xu, Zhenhui


This paper analyzes the effects of the growth of nonfuel primary exports on the growth of industrial exports and GDP in 74 economies between 1965 and 1992. There is clear evidence of positive effects, both in the short term and in the long term, of the growth of primary exports on the growth of industrial exports and GDP in more than two-thirds of the economies. Therefore, governments in developing countries should not discriminate against the export of primary products, as some earlier studies suggest. Instead, they should adhere to policies that aim at export promotion. Copyright 2000 by Blackwell Publishing Ltd

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  • Xu, Zhenhui, 2000. "Effects of Primary Exports on Industrial Exports and GDP: Empirical Evidence," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 307-325, October.
  • Handle: RePEc:bla:rdevec:v:4:y:2000:i:3:p:307-25

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    References listed on IDEAS

    1. Galor, Oded & Tsiddon, Daniel, 1996. "Income Distribution and Growth: The Kuznets Hypothesis Revisited," Economica, London School of Economics and Political Science, vol. 63(250), pages 103-117, Suppl..
    2. Anand, Sudhir & Kanbur, S. M. R., 1993. "Inequality and development A critique," Journal of Development Economics, Elsevier, vol. 41(1), pages 19-43, June.
    3. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    4. Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
    5. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
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    Cited by:

    1. Adel Shakeeb Mohsen, 2015. "Effects of Oil and Non-Oil Exports on the Economic Growth of Syria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(2), pages 69-78, June.
    2. Sheridan, Brandon J., 2014. "Manufacturing exports and growth: When is a developing country ready to transition from primary exports to manufacturing exports?," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 1-13.
    3. Bosupeng, Mpho, 2015. "Exports Multiplicity and The Dutch Disease," MPRA Paper 77919, University Library of Munich, Germany, revised 2015.

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