By Gerry Helleiner
Lately, a lot has been made up of the good fortune of constructing international locations, really in East Asia, that have accomplished fiscal progress via production items that are then exported to built economies. Case stories of 5 nations discover critical strength problems in protecting the speed of producing for export within the constructing nations, and exhibits that there's no easy courting among import liberalization and production for export.
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Additional info for Manufacturing for Export in the Developing World: Problems and Possibilities
Given the predominance of natural resources in the export basket—mining (mainly copper), fish, forestry, and fruit—this section also assesses the potential for a ‘second export stage’, emanating from forward and backward linkages in natural resource export production. The third section (pages 40–6) provides a comparison of the performance of export and non-export manufacturing firms. This section concludes that, in general, export firms have higher productivity, higher wages, higher investment (in machinery) per worker, and lower value added than non-export firms of the same manufacturing industry.
In 1992 Chilean small exporters exporting less than US$10 million of a particular category had a simplified imported inputs tariff reimbursement rate of 10 per cent; small exporters in the US$10 million to US$15 million range had a tariff reimbursement rate of 5 per cent; and small exporters in the US$15 million to US$18 million range had a tariff reimbursement rate of 3 per cent. 6). The total value of exports benefiting from the broader export subsidy mechanism increased from US$246 million in 1986 to over US$900 million in 1991.
Exports of NR are generally thought to use a low level of technology so that the overall economy does not enjoy any technological externalities from them. This is an argument for promoting exports of industrial goods which require the use of modern technology. These arguments have been used to suggest the need to move to a second export stage. The discussion of the second export stage focuses on the achievement of more value added to current NR exports, through processing. In other words, this second export stage is based on the idea of promoting NR forward linkages; for example, by exporting apple juice, wine, and canned fruit (instead of fresh grapes and apples), wood furniture and paper (instead of 37 PATRICIO MELLER sawn wood), manufactured copper products, etc.