Export growth in developing countries and the political economy of protectionism: Econometric analysis

In theory, several factors affect export performance, the major ones being export supply capabilities, export prices, the size of production relative to the strength of domestic demand, and the demand potential for imports in partner countries. A larger production capacity is assumed to increase output and thus the ability to supply export markets. Levels of domestic gross fixed capital formation (I) or, alternatively, of manufacturing output (MAN), or their shares in GDP, are generally used as proxies for a country's ability to export manufactures.

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