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Developing countries' integration into the world economy

Author

Listed:
  • Lars, Nilsson

    (DG Trade)

  • Kutlina-Dimitrova, Zornitsa

    (DG Trade)

Abstract

The importance of international trade for economic prosperity is well documented and has been acknowledged for centuries. There is a wealth of evidence demonstrating that trade liberalisation and trade integration have been crucial factors behind the rise in prosperity for an ever-increasing part of the global population. Trade is thus a powerful source of economic, technological and even societal change. However, many, but not all, developing countries have managed to increase their exports in a permanent way and integrate successfully in the world economy over the past decades. This paper thus provides a comprehensive overview of developing countries export performance over the 2000-2019 period using both quantitative and qualitative trade indicators. We classify developing countries in three groups as Front-runners, Mixed-result countries and Lagging-behind countries while highlighting the role of LDCs, emerging G20 countries as well as developing countries joining the WTO after the Uruguay Round in the various categories. Furthermore, we introduce a social dimension to the analysis and assess how the direction of the country groups’ exports has changed in terms of destination over the period considered.

Suggested Citation

  • Lars, Nilsson & Kutlina-Dimitrova, Zornitsa, 2023. "Developing countries' integration into the world economy," DG TRADE Chief Economist Notes 2023-2, Directorate General for Trade, European Commission.
  • Handle: RePEc:ris:dgtcen:2023_002
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    More about this item

    Keywords

    international trade; quantitative analysis; developing countries; score board; global value chains;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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