Explaining diversification in exports across higher manufacturing content : what is the role of commodities? / Jan Rieländer and Bakary Traoré

Rieländer, Jan ; Traoré, Bakary

Englisch

Paris : OECD, 2015

Online-Ressource (38 S.) : graph. Darst.

Zsfassung in franz. Sprache

Systemvoraussetzungen: PDF Reader

DOI: 10.1787/5jrs8sq91p9x-en

*Development

Exportdiversifizierung / Wirtschaftsstruktur / Industrialisierung / Rohstoffwirtschaft / Entwicklungsländer

Arbeitspapier / Working paper / Online-Publikation / Online-publication

Journal of Economic Literature: C23

Journal of Economic Literature: F14

Journal of Economic Literature: O5

Journal of Economic Literature: F43

Journal of Economic Literature: O11

Most low-income countries export mainly unprocessed commodities. Yet, in their pursuit of structural transformation, they also seek a more diversified economic structure, including developing a strong manufacturing sector to create jobs and spur innovation as in more advanced economies. What is the best way for them to promote economic diversification? Should countries aim straight for anufacturing? Should they focus on the products most in line with their already-known and used endowments? Should they follow some sort of ladder of activities towards a well-diversified economy? Or should they simply lean back and let the markets sort it out? Finally, do the answers vary depending on the country? A body of recent research suggests that a countrys diversification process would tend to move along pathways of nearby products: the new products it specialises in would build on the existing productive capabilities and knowledge used to produce the old ones. It would follow then that low-income, raw commodity exporting countries should build on their naturalresource endowments. This would not always imply moving downstream and transforming those resources locally. Depending on learning processes, capabilities and the types of endowments, value addition at the local level may or may not make economic sense.

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