Breaking into New Markets, Raising Quality, and Improving Services : Neglected Avenues for Export Diversification
Expanding international trade is an important avenue for growth and development in low-income countries. In addition to increasing the quantity of existing export flows, many countries seek to diversify into production and export activities that pr...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2009/09/11361592/breaking-new-markets-raising-quality-improving-services-neglected-avenues-export-diversification http://hdl.handle.net/10986/11109 |
| Summary: | Expanding international trade is an
important avenue for growth and development in low-income
countries. In addition to increasing the quantity of
existing export flows, many countries seek to diversify into
production and export activities that provide a higher
return to the labor and capital resources employed. Export
diversity also reduces a country's vulnerability to
pronounced price swings in international markets. This note
reviews the findings of a series of papers on the
diversification process contained in Newfarmer, Shaw, and
Walkenhorst (2009). The analysis suggests that there has
been too much focus on simply adding new products to export
portfolios, which often underscores the use of industrial
policies. While such actions are important, a more
comprehensive view of diversification, and hence a more
comprehensive trade policy, is needed that improves the
quality of existing exports, breaks into new geographic
markets, and increases services exports. |
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