Export Performance and Effects of Trade Liberalization

In some Asian developing countries — for example, India, Pakistan, China, Chinese Taipei (Taiwan), South Korea, Thailand, and Indonesia — SMEs in the manufacturing industry have also been playing an important role in exports, directly or indirectly (through, for example, subcontracting arrangements with LEs or MNCs), although the level of export involvement varies by country. As can be seen in Table 4.1, China’s SMEs play the leading role, making the greatest export contribution of 40–60 percent of the country’s total merchandize exports, followed by Chinese Taipei with 56 percent. In South Asia, the export share of Indian SMEs tends to approximate to 40 percent. In the sports goods and garments sector their contribution to exports is as high as 90–100 percent (Pandey, 2007, p. 7). In Pakistan for the past three decades the fastest-growing export industries have been dominated by SMEs. Important export contributions from the enterprises emanate from subsectors like cotton weaving and other textiles and surgical equipment. In total, they generated 25 percent of manufacturing export earnings, or about USD 2.5 billion in 2005.