Trade Policy and Strategy Framework

1 2 3 4 5 6 7 8

Bog'liq
090902dti

Changes in Global Trade

Structure of trade increasingly assumes intra-industry rather than inter-industry character.
As a group developing countries’ exports growing faster than the world average. The Asian countries have by and large predominated.
Emergence of global supply-chains for manufacturing & services as a result of production unbundling and growing trade in intermediate products.

With declining emphasis on comparative advantage, developing production capacities, investment in human capital, research and innovation & technology mastery become important.
Managing this requires strategic collaboration between government and business.
Strategic trade policies thus aim at shifting the structure of products & exports away from commodity dependence towards sophistic and value-added production (content of exports matter).

Trade liberalisation experience since the 1990s occasioned significant trade growth, with both imports & exports growing as a % of GDP. However, the pattern of trade has not changed significantly:
Manufacturing exports in capital and high skills intensive sectors and products have expanded through trade; labour intensive production has contracted in the face of import penetration especially leather, footwear & textiles.
Openness has led to contraction of certain labour-intensive sectors, with dire employment consequences.

Liberalisation episode in the 1990s deepened comparative advantage in capital intensive production based on the extraction of mineral wealth.
Accumulation of capital assets & technical knowledge in these sectors have made them more competitive than labour-intensive sectors (previous industrial policies).
Essentially SA faces competitive pressure both from developed and developing countries (largely Asia).
Liberalisation in SA reinforced a capital & high skill-intensive growth path exacerbating bias against low-skilled labour-intensive production.

Do'stlaringiz bilan baham:

1 2 3 4 5 6 7 8