Export-oriented Industrialisation Through Primary Processing?

Abstract

Recent research suggests that East Asia's manufactured export success is not replicable in other developing countries, with lower skill/land ratios. This conclusion, however, is based on a narrow definition of manufactured exports. The present paper asks whether the chances of export-oriented industrialisation in countries with low skill/land ratios seem better when the definition of manufactures is broadened to include processed primary products. The answer from its cross-country econometric analysis is "yes" for countries with moderately skilled labour forces (as in Latin America), but "no” for countries where levels of skill are low (as in Africa).