In Which Industries to Invest? Aligning Market and Development Incentives in Myanmar

Ayres, Steven; Freire, Clovis

doi:10.1355/ae31-3d

Cited by 2 publications

(1 citation statement)

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“…Despite these shortcomings, this paper make two contributions to the literature. We extend the methodology of supply-side-focused economic complexity analysis applied in a number of studies to guide industrial policy in developing countries (Ayres and Freire 2014;Hausmann and Chauvin 2015;Hausmann and Klinger 2006a;Hausmann et al 2014Hausmann et al , 2016Hausmann et al , 2017Hidalgo 2011) with a structured demand-side analysis, ranking products in accordance with their revenue-generating trade potential. Most other studies do not consider demand-side factors at all, and none use gravity models to map the export potential of products and markets.…”

Section: Discussionmentioning

confidence: 99%

Economic complexity and structural transformation: the case of Mozambique

Sørensen¹,

Estmann²,

Sarmento³

et al. 2020

WIDER Working Paper

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Mozambique is among the world’s least complex economies. By systematically accounting for both supply- and demand-side factors, we identify new products and sectors that can help to diversify and upgrade its economy. In a supply-side analysis, we use network methods from the literature on economic complexity to identify a set of target products that are complex, require productive capabilities useful in the export of other products, and are close to Mozambique’s existing productive structure. In a demand-side analysis, we use gravity models to predict the export potential of target products and markets given product-specific trade resistance and geographically dispersed demand. The broad sectoral focus of Mozambique’s industrial policy is largely consistent with structural transformation and export promotion. The current prioritization of agriculture, agro-industry, and metals is especially important, while there are unexploited opportunities in machinery, vehicles, and transport equipment. We find some potential for Mozambique to export target products to neighbouring countries.

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Section: Discussionmentioning

confidence: 99%