Product Standards, Exports and Employment: An Analytical StudyThrough the process of globalization, the trade dependence and int- dependence of the developing countries have increased phenomenally than ever before. The characteristic of this late twentieth-century globalization process has been the new technological revolution that has led to a high rate of world exports of electronics and other high-technology products. This has marginalized most of the developing countries exporting largely the low quality and low value-addition manufacturing and primary products, barring a few exceptions like China, India and Mexico. The fruits of globalization have, therefore, been unevenly distributed so far across the developed and the developing countries. Moreover, whatever little growth in exports of medium technology products has been achieved by a few of them, is largely driven by outsourcing of low value-addition and low- stage of activities by the foreign multinationals. Outsourcing of software services, rather than development of software packages, in India and assembly line for automobiles in Mexico are the two glaring examples. These activities may have boosted the total exports of these countries, but they have failed to generate any feedback effect on the rest of the economy in terms of skill formation, increase in overall productivity level and product diversification. |
Other editions - View all
Product Standards, Exports and Employment: An Analytical Study Rajat Acharyya No preview available - 2009 |
Common terms and phrases
A₁ Acharyya acquiring skill adverse selection aggregate employment autarky average industry quality buyers cater China cleaner technologies competitive composite traded consequently consumption cost of quality country-B market developing countries dirty exports environmental quality environmental regulations environmental-quality equilibrium export markets export quality factor prices factors of production Figure high-type consumers imports income distribution increase India indifference curves innovation input IR constraint Korea low-type consumers lower quality marginal cost marginal utility marginal willingness-to-pay minimum environmental standard minimum wage monopolist offers moral hazard non-traded sector non-traditional exports Northern consumers nugget output P₂ percent pollution price-quality menu product quality profit purchasing power constraint quality enhancement quality level raises rate of return real income return to capital selection of export separating menu share skill formation skilled labour skilled wage small open economy South Sri Lanka tariff topmost quality types unskilled labour unskilled money wage wage policy willingness-to-pay for quality