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Shifting patterns of comparative advantage : manufactured exports in developing countries

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  • Yeats,Alexander James

Abstract

Labor intensive goods are the strongest export items for developing countries - and the United States is the developing countries'biggest market. In 1965 the National Bureau of Economic Research predicted that developing countries would specialize in the manufacture and export of labor intensive goods - and prepared a list of those goods. A study of actual exports for 1965 - 1986 revealed that with few exceptions, export performance of those labor-intensive goods was superior in developing countries - which increased their market shares for those items despite generally declining shares of world trade. The United States absorbed nearly 55 percent of labor intensive products in 1986. And more than 40 percent of total U.S. imports of labor intensive goods came from developing countries. Many of the products the National Bureau identified as labor intensive remain so, and therefore remain suitable for production and export by developing countries. Clothing, footwear, leather products, wood manufactures, and some primary metal manufactures became relatively more labor intensive; so producers in industrial countries can expect increased competition from the developing countries in these products in the 1990s.

Suggested Citation

  • Yeats,Alexander James, 1989. "Shifting patterns of comparative advantage : manufactured exports in developing countries," Policy Research Working Paper Series 165, The World Bank.
  • Handle: RePEc:wbk:wbrwps:165
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    References listed on IDEAS

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    1. Yeats, Alexander J, 1977. "Do International Transport Costs Increase with Fabrication? Some Empirical Evidence," Oxford Economic Papers, Oxford University Press, vol. 29(3), pages 458-471, November.
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    Cited by:

    1. Yeats, Alexander J., 1989. "Do Caribbean exporters pay higher freight costs?," Policy Research Working Paper Series 244, The World Bank.
    2. Kannapiran, Chinna A. & Fleming, Euan M., 1999. "Competitiveness And Comparative Advantage Of Tree Crop Smallholdings In Papua New Guinea," Working Papers 12911, University of New England, School of Economics.
    3. Budiono, 2003. "Structural Change and Its Effect on Industrial Pollution of the Manufacturing Sector," Working Papers in Economics and Development Studies (WoPEDS) 200308, Department of Economics, Padjadjaran University, revised Jul 2003.
    4. MoonJoong Tcha & Vitaly Pershin, 2002. "Reconsidering Performance at the Summer Olympics and Revealed Comparative Advantage," Economics Discussion / Working Papers 02-09, The University of Western Australia, Department of Economics.
    5. Erzan, Refik & Yeats, Alexander, 1990. "Tariff valuation bases and trade among developing countries : do developing countries discriminate against their own trade?," Policy Research Working Paper Series 371, The World Bank.
    6. Bartlomiej Kaminski, 2000. "Industrial Restructuring as Revealed in Hungary's Pattern of Integration into European Union Markets," Europe-Asia Studies, Taylor & Francis Journals, vol. 52(3), pages 457-487.
    7. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank.
    8. Kaminski, Bartlomiej, 1999. "Hungary's integration into European Union markets - production and trade restructuring," Policy Research Working Paper Series 2135, The World Bank.
    9. Moonjoong Tcha & Vitaly Pershin, 2003. "Reconsidering Performance at the Summer Olympics and Revealed Comparative Advantage," Journal of Sports Economics, , vol. 4(3), pages 216-239, August.
    10. Nigel Nagarajan, 1998. "MERCOSUR and Trade Diversion: What Do The Import Figures Tell Us?," European Economy - Economic Papers 2008 - 2015 129, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    11. Ni Putu Wiwin Setyari & I. Nengah Kartika & I. Wayan Wenegama & Ni Putu Martini Dewi & I. Ketut Sudiana, 2017. "Capital Intensity Effects on International Capital Flows and Current Account of Association of Southeast Asian Nations + 6 Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 135-144.

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