The Growth and Implications of LDC Manufactured Exports to Advanced Countries

Abstract

Summary After briefly examining recent export trends of less developed countries, this paper discusses measures which can be adopted by advanced countries to facilitate Third World manufactured exports. While the provision of tariff preferences are shown to be unwarranted, there is a strong argument for furthering (trade‐ induced) structural adjustments. Evidence is provided that imports from less developed countries do not significantly displace workers and that an enhancement of manufactured trade with Third World countries would indeed yield the developed countries with sizeable gains.

The Demand for Foreign Workers in the Manufacturing Sector in Malaysia

“…This study findings complement previous studies, of Stein (1981) and Myint (1984). In their studies, they found that the demand for foreign workers by exportoriented industries tends to increase.…”

Effects of Slowdown in Industrial Countries on Growth in Non-Oil Developing Countries

“…In a study using annual data for 1951-69, Khan (1974) found that the quantity of exports for each of 15 individual non-oil developing countries could be well explained by the level These figures are from IMF, World Economic Outlook (1981), Table 11, also contains detailed data on export volume growth for all non-oil developing countries and for relevant analytical and regional subgroups. 40 This subsection draws rather heavily on the discussion of tariff preferences for developing countries in Stein (1981) and the World Bank, World Development Report 1981. 39 Stein (1981) also cites the growing competitiveness of developing countries as an important factor in their increasing share of total industrial country imports of manufactures during the 1963-76 period, with unusually large market-share gains recorded in the clothing and engineering goods categories.…”

“…39 Stein (1981) also cites the growing competitiveness of developing countries as an important factor in their increasing share of total industrial country imports of manufactures during the 1963-76 period, with unusually large market-share gains recorded in the clothing and engineering goods categories. In 1963, developing countries had a 6.1 per cent share of the value of all industrial countries' imports of manufactures; by 1976, this share had grown to 8.7 per cent (see Stein (1981), Table 2).…”

“…To begin with, there are those (e.g., Murray (1977)) who argue that non-oil developing countries may not really need preferential access to industrial country markets because they possess a comparative advantage in many manufactured products. Stein (1981), for example, cites the increased market shares of developing countries in total manufactured of industrial countries' real income and by the ratio of the developing country's export price to an average of export prices of industrial countries. Further, the relative export price elasticity of demand was statistically significant for 9 of the 15 non-oil developing countries in the sample.…”

Export orientation of Indonesia’s manufacturing industry

“…Indonesia has an "exportoriented" strategy for the growth of the manufacturing industry, which produces goods for the primary purpose of exporting or controlling the export market. According to Stein (1981) and Myint (1984), an "export-oriented" strategy would increase labor demand in the industry. That is due to the expansion of the market, which encourages business activities.…”