Analytical Framework
Ganeshan Wignaraja
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Ganeshan Wignaraja: Commonwealth Secretariat
Chapter 2 in Trade Liberalization in Sri Lanka, 1998, pp 11-52 from Palgrave Macmillan
Abstract:
Abstract This chapter examines different approaches to explaining manufactured export performance in a small open developing economy. Section 2.2 surveys the literature on the macroeconomic determinants of overall manufactured export performance in developing countries. Section 2.3 focuses on the main theories of international trade which permit the identification of factors, largely at the industry level, that affect a country’s pattern of manufactured exports and comparative advantage. Section 2.4 examines the predictions of different trade theories for a small, open economy, the assumptions concerning shifts in comparative advantage in manufacturing over time and policy needs. The discussion also introduces the recent technological capability (TC) approach which is based on the literature on firm-level technological capabilities in developing countries. Section 2.5 discusses the issues to be addressed in this study.
Keywords: Foreign Direct Investment; Comparative Advantage; Real Exchange Rate; Trade Liberalization; Industrial Policy (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-26267-0_2
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DOI: 10.1007/978-1-349-26267-0_2
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