Social absorption capability, systems of innovation and manufactured export response to preferential trade incentives
In many extant analyses of the impact of non-reciprocal system of trade preferences it is typical to focus on the details of market access value of tariff concessions as explanation for why export of beneficiaries may or may not respond to incentives. Very often, the role that supply related factors can, and do play in the process is relegated to the background. This paper argues that the social absorption capability of a beneficiary's economy as expressed in her incumbent systems of innovation is a crucial determinant of export performance response. The experience of sub-Sahara African countries under the US African Growth and Opportunity Act apparel trade incentive is used as a classical illustration of this proposition. It is shown that the comparative efficiency of Lesotho, despite emerging from a relatively weak trade performance potential background, in recording the highest level of export success among beneficiaries of the scheme is a function of the relative efficiency of her systems of innovation.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
- Lewis, W Arthur, 1980.
"The Slowing Down of the Engine of Growth,"
American Economic Review,
American Economic Association, vol. 70(4), pages 555-564, September.
- Lewis, Arthur, 1979. "The Slowing Down of the Engine of Growth," Nobel Prize in Economics documents 1979-2, Nobel Prize Committee.
- Franco Malerba, 2005. "Sectoral systems of innovation: a framework for linking innovation to the knowledge base, structure and dynamics of sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 63-82.
- Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
- Hoekman, Bernard & Ozden, Caglar, 2005. "Trade preferences and differential treatment of developing countries : a selective survey," Policy Research Working Paper Series 3566, The World Bank.
- Angathevar Baskaran & Mammo Muchie, 2009. "Exploring the impact of national system of innovation on the outcomes of foreign direct investment," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 2(4), pages 314-345.
- Gibbon, Peter, 2003. "The African Growth and Opportunity Act and the Global Commodity Chain for Clothing," World Development, Elsevier, vol. 31(11), pages 1809-1827, November. Full references (including those not matched with items on IDEAS)