The Technological Structure and Performance of Developing Country Manufactured Exports, 1985-1998

The Technological Structure and Performance of Developing Country Manufactured Exports, 1985-1998

June 2000 | Sanjaya Lall
This paper examines the technological structure and performance of manufactured exports from developing countries from 1985 to 1998. It argues that export structures, being path-dependent and difficult to change, have significant implications for growth and development. Low-technology products tend to grow slowly, while technology-intensive products grow faster. East Asia dominates the scene with 70% of developing-world manufactured exports, and there is high and rising concentration at the national level. The strategies used to achieve competitiveness differ greatly between countries, and received trade theory cannot explain these patterns without considering learning processes and policies used to promote them. The paper provides a comprehensive mapping of recent export patterns, focusing on the technological structure of manufactured exports, their quantity, and distribution. It compares developing countries with developed countries and within the developing world, analyzing the main trends in world trade and the comparative performance of developed versus developing countries. The paper also discusses the implications and drivers of export success, highlighting the importance of technology in shaping export structures and the role of government policies and foreign direct investment (FDI) in fostering technological learning and capability building. The technological classification used in the paper distinguishes between resource-based, labor-intensive, scale-intensive, differentiated, and science-based manufactures. The analysis shows that technology-intensive products lead in dynamism, with high technology products growing the fastest. Developing countries lead in growth rates, particularly in technology-intensive products, and their share in total world exports has increased marginally. However, export success is highly uneven, with East Asia dominating the developing world's exports and other regions lagging behind. The paper concludes by emphasizing the need for targeted policies to support technological learning and capability building in developing countries.This paper examines the technological structure and performance of manufactured exports from developing countries from 1985 to 1998. It argues that export structures, being path-dependent and difficult to change, have significant implications for growth and development. Low-technology products tend to grow slowly, while technology-intensive products grow faster. East Asia dominates the scene with 70% of developing-world manufactured exports, and there is high and rising concentration at the national level. The strategies used to achieve competitiveness differ greatly between countries, and received trade theory cannot explain these patterns without considering learning processes and policies used to promote them. The paper provides a comprehensive mapping of recent export patterns, focusing on the technological structure of manufactured exports, their quantity, and distribution. It compares developing countries with developed countries and within the developing world, analyzing the main trends in world trade and the comparative performance of developed versus developing countries. The paper also discusses the implications and drivers of export success, highlighting the importance of technology in shaping export structures and the role of government policies and foreign direct investment (FDI) in fostering technological learning and capability building. The technological classification used in the paper distinguishes between resource-based, labor-intensive, scale-intensive, differentiated, and science-based manufactures. The analysis shows that technology-intensive products lead in dynamism, with high technology products growing the fastest. Developing countries lead in growth rates, particularly in technology-intensive products, and their share in total world exports has increased marginally. However, export success is highly uneven, with East Asia dominating the developing world's exports and other regions lagging behind. The paper concludes by emphasizing the need for targeted policies to support technological learning and capability building in developing countries.
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