Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition?
This paper tests for a ‘fallacy of composition’ by analysing the demand for exports of the 18 developing countries that are most specialised in manufactures in the markets of the 10 largest industrial countries. Estimated export equations (both time-series and panel data) suggest that most developing countries compete with other developing country exporters rather than with industrialised country producers. A smaller number of countries that export more high-technology products compete with industrialised country producers and also have higher expenditure elasticities for their exports. Thus, the fallacy of composition applies mainly to the larger group of countries exporting mostly low-technology products.
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.:
- Riedel, James, 1988. "The Demand for LDC Exports of Manufactures: Estimates from Hong Kong," Economic Journal, Royal Economic Society, vol. 98(389), pages 138-48, March.
- Inder, Brett, 1993. "Estimating long-run relationships in economics : A comparison of different approaches," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 53-68.
- Terrie L. Walmsley & Thomas W. Hertel, 2001.
"China's Accession to the WTO: Timing is Everything,"
The World Economy,
Wiley Blackwell, vol. 24(8), pages 1019-1049, 09.
- Hertel, Thomas W. & Terrie Walmsley, 2000. "China's Accession to the WTO: Timing is Everything," GTAP Working Papers 403, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Spilimbergo, Antonio & Vamvakidis, Athanasios, 2003.
"Real effective exchange rate and the constant elasticity of substitution assumption,"
Journal of International Economics,
Elsevier, vol. 60(2), pages 337-354, August.
- Antonio Spilimbergo & Athanasios Vamvakidis, 2000. "Real Effective Exchange Rate and the Constant Elasticity of Substitution Assumption," IMF Working Papers 00/128, International Monetary Fund.
- Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-15, March.
- Ocampo, José Antonio & Parra, María Angela, 2003.
"The terms of trade for commodities in the twentieth century,"
Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
- Jose Antonio Ocampo & Maria Angela Parra, 2004. "The Terms Of Trade For Commodities In The Twentieth Century," International Trade 0402006, EconWPA.
- Jörg Mayer, 2003.
"The Fallacy Of Composition: A Review Of The Literature,"
UNCTAD Discussion Papers
166, United Nations Conference on Trade and Development.
- Jörg Mayer, 2002. "The Fallacy of Composition: A Review of the Literature," The World Economy, Wiley Blackwell, vol. 25(6), pages 875-894, 06.
- Boozer, Michael A., 1997. "Econometric Analysis of Panel Data Badi H. Baltagi Wiley, 1995," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October.
- Michael Landesmann & Sebastian Leitner & Robert Stehrer, 2001. "Trade Liberalization and Labour Markets: Perspective from OECD Economies," wiiw Working Papers 20, The Vienna Institute for International Economic Studies, wiiw.
- Luci Ellis, 2001. "Measuring the Real Exchange Rate: Pitfalls and Practicalities," RBA Research Discussion Papers rdp2001-04, Reserve Bank of Australia.
- Barry Eichengreen & Yeongseop Rhee & Hui Tong, 2004. "The Impact of China on the Exports of Other Asian Countries," NBER Working Papers 10768, National Bureau of Economic Research, Inc.
- Goldstein, Morris & Khan, Mohsin S., 1985. "Income and price effects in foreign trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 20, pages 1041-1105 Elsevier.
- Hendry, David F, 1988. "The Encompassing Implications of Feedback versus Feedforward Mechanisms in Econometrics," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 132-49, March.
- Antonio Spilimbergo & Rupa Duttagupta, 2000.
"What Happened to Asian Exports During the Crisis?,"
IMF Working Papers
00/200, International Monetary Fund.
- Breusch, Trevor S & Wickens, Michael R., 1987. "Dynamic Specification, the Long Run and the Estimation of Transformed Regression Models," CEPR Discussion Papers 154, C.E.P.R. Discussion Papers.
- Gian M Milesi-Ferretti & Lorenzo Giorgianni, 1997.
"Determinants of Korean Trade Flows and their Geographical Destination,"
IMF Working Papers
97/54, International Monetary Fund.
- Giorgianni, Lorenzo & Milesi-Ferretti, Gian Maria, 1997. "Determinants of Korean Trade Flows and their Geographical Destination," CEPR Discussion Papers 1703, C.E.P.R. Discussion Papers.
- Balassa, Bela, 1988. "The adding up problem," Policy Research Working Paper Series 30, The World Bank.
- Lall, Sanjaya & Albaladejo, Manuel, 2004.
"China's Competitive Performance: A Threat to East Asian Manufactured Exports?,"
Elsevier, vol. 32(9), pages 1441-1466, September.
- Sanjaya Lall and Manuel Albaladejo (QEH), . "China’s Competitive Performance: A Threat To East Asian Manufactured Exports?," QEH Working Papers qehwps110, Queen Elizabeth House, University of Oxford.
- Kasahara, Shigehisa, 2004.
"The Flying Geese Paradigm: A critical study of its application to East Asian regional development,"
21881, University Library of Munich, Germany.
- Shigehisa Kasahara, 2004. "The Flying Geese Paradigm: A Critical Study Of Its Application To East Asian Regional Development," UNCTAD Discussion Papers 169, United Nations Conference on Trade and Development.
- Cline, William R., 1982. "Can the East Asian model of development be generalized?," World Development, Elsevier, vol. 10(2), pages 81-90, February.
- Faini, Riccardo & Clavijo, Fernando & Senhadji-Semlali, Abdel, 1992. "The fallacy of composition argument : Is it relevant for LDCs' manufactures exports?," European Economic Review, Elsevier, vol. 36(4), pages 865-882, May.
- T. S. Breusch & A. R. Pagan, 1980.
"The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics,"
Review of Economic Studies,
Oxford University Press, vol. 47(1), pages 239-253.
- Breusch, T.S. & Pagan, A.R., . "The Lagrange multiplier test and its applications to model specification in econometrics," CORE Discussion Papers RP 412, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Lall, Sanjaya, 1998. "Exports of Manufactures by Developing Countries: Emerging Patterns of Trade and Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 54-73, Summer.
- Kaplinsky, Raphael, 1993. "Export Processing Zones in the Dominican Republic: Transforming manufactures into commodities," World Development, Elsevier, vol. 21(11), pages 1851-1865, November.
- Philip Arestis & Michelle Baddeley & John McCombie, 2005. "Introduction," Chapters, in: The New Monetary Policy, chapter 1 Edward Elgar Publishing.
- Muscatelli, V. A. & Stevenson, A. A. & Montagna, C., 1994. "Intra-NIE competition in exports of manufactures," Journal of International Economics, Elsevier, vol. 37(1-2), pages 29-47, August.
- Takatoshi Ito & Tamim Bayoumi & Peter Isard & Steven A. Symansky, 1996. "Exchange Rate Movements and Their Impact on Trade and Investment in the APEC Region," IMF Occasional Papers 145, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:amu:wpaper:0606. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Meal)
If references are entirely missing, you can add them using this form.