ABSTRACT
Historically, the less-developed countries have been exporters of primary products and importers of manufactures. While this pattern broadly persists today, the importance of manufactured goods in ldcs’ exports is increasing. Indeed, while for the majority of ldcs manufactured exports account for less than 10 per cent of their export proceeds, for a few such exports now form the main source of their foreign exchange earnings. Whether the majority of ldcs can follow the lead of the few is a moot question. The world market for manufactures is expanding faster than that for primary commodities, and therefore diversification into manufactures would appear to offer better prospects for increasing foreign exchange earnings and stimulating development than continued dependence on primary product exports. But these prospects depend on the extent to which ldcs’ manufactured goods are allowed access to export markets, and on the ability and willingness of ldcs to overcome domestic impediments to the growth of export industries. This chapter sets out first to examine the main trends in ldcs’ manufactured exports and then to consider the main demand and supply problems and possibilities facing ldc manufactures exporters.
