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Trade and Development Report 1989

image of Trade and Development Report 1989

Global output and trade expanded very rapidly last year and are continuing to grow, though at a somewhat reduced pace. The international economy is apparently in good health. However, this appearance is misleading. The growth impulses that are present are quite fragile, and will need to be actively protected.

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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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