Marginalisation of LDCs and Small Vulnerable States in World Trade

Paperback: £45.00
978-0-85092-819-8

Marginalisation of LDCs and Small Vulnerable States in World Trade

Series Title: Economic Paper
Publication date: 1 January 2004
Size: 240mm x 165mm
ISBN: 978-0-85092-819-8
Pages: 126

There are indisputable concerns over the ineffective participation of Least-Developed Countries (LDCs) and Small Vulnerable Economies (SVEs) in the process of global integration, and their failure to derive benefits from the ongoing process of trade liberalisation and globalisation.

The present paper explains the theme of 'marginalisation' of Least-Developed Countries (LDCs) and Small Vulnerable Economies (SVEs) in the international trade arena, in terms of their declining relative importance in world trade. Statistical analysis is used to determine the long-term declining share of LDCs and SVEs in world merchandise exports. The study argues that the process of marginalisation of these countries is mostly the result of the failure of LDCs and SVS to diversify from their static comparative advantage related to the production of primary products, the significance of which in world trade has declined considerably during the past decades. The analysis emphasises the need for diversification of exports and an expansion of the manufacturing export base in these countries.



ContentsExpand or collapse me

Executive Summary  

1. Introduction  

2. LCDs and Small States in World Trade: Volume, Growth Rate and Share
2.1 Merchandise Exports
2.2 Exports of Commercial Services
2.3 Total Export (Merchandise plus Commercial Services) Trade
2.4 Total Trade Transactions  

3. The Performance of Individual Countries
3.1 Long-term Trends
3.2 Recent Performance of Individual Countries
3.3 Loss Exports Due to Marginalisation  

4. Marginalisation in Merchandise Export Trade: A Statistical Analysis
4.1 Understanding Marginalisation
4.2 A Simple Model of Marginalisation of Small States
4.3 Data
4.4 Empirical Estimation of the Model for LCDs
4.5 Estimation of the Model for Small States
4.6 Conclusion  

5. Implications for Long-term Trade and Development  

Appendices

References