Trade performance and competitiveness

Selected issues relevant for Asian developing economies

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This volume comprises four selected research essays on different aspects of trade and industry issues that are of significance and interest to researchers and policy analysts alongside policy makers in the Asian region: 1) Structural transformation and trade policy: Case of Nepal, 2) Logistics performance and trade: An analysis of India’s trade in intermediates with Bangladesh and Thailand, 3) An analysis of export performance of manufacturing and service sector enterprises in Sri Lanka, and 4) Evaluation of business association membership on small and medium enterprises’ growth performance: Evidence from enterprise survey of Cambodia. These essays are written by researchers in Asian countries, brought together by the Asia-Pacific Research and Training Network on Trade (ARTNeT) which from April 2011 until September 2013 has implemented its Phase III under the topic of ‘Drivers of Competitiveness and Strategies for Economic Diversification for Developing Countries - Building Policy Making Capacity in Asia and the Pacific.’



Structural transformation and trade policy: Case of Nepal

High and sustained economic growth entails structural transformation. This involves the shift of productive factors from low-productivity and low-wage activities to high-productivity and high-wage activities. The aim is to move the output structure into higher-productivity activities, and production of more complex and sophisticated products. In the past, structural transformation was generally seen as a consequence of growth and development. However, recent advance in literature has produced powerful analysis methods for appreciating the role of structural transformation in inducing growth and development. It also provides evidence that product potential varies in effecting structural transformation. In particular, what a country exports now influences the type of goods it will export in future, thus influencing its future economic growth rate. In this context, the literature suggests that governments may have a more direct and important role to play, particularly in economies with low economic complexity.


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