ABSTRACT
Although Hirschman (1958, 1970) had argued convincingly about the positive role export
markets offered poor countries in their efforts to develop by providing the scale essential
to stimulate backward linkages, it was not until the stark consequences of static import-
substitution policies that had not clearly monitored technological upgrading target until
the 1980s in countries, such as China, India, Indonesia and Brazil, that the debate on
export-oriented industrialization was clear. On the one hand, Wallerstein (1979), Frobel,
Heinrich, and Kreye (1980) and Henderson (1989) had argued that foreign-capital-led,
export-oriented industrialization models merely created low-value-added jobs that were
both transient and exploited on low wages in such economies. On the other hand, Warr
(1987, 1989) and Jomo (1990) argued that export-processing zones simply created tempo-
rary jobs that were strongly subsidized through incentives by host governments. While
developing economies openly invite foreign industrialists, they do contribute to the
growth of local economy in the recipient country and provide opportunities required by
them. However, the extent of transfer of technological know-how into local economy is
still debated. Interestingly, the private sector contributed over 85% of Myanmar’s GDP in
2005 (Than and Thein 2007).
