Development Economics (L8).pptVIP

Mozaffar Qizilbash Should developing countries specialise in the export of those commodities they have in abundance? Primary products versus manufacturing products? Data suggest that the share of primary exports in total exports falls as per capita incomes rise. Does this imply that LDCs export primaries and import manufactures, while developed countries do the opposite? Much of the increase in trade among LDCs has been between LDCs. The theory of comparative advantage suggests that countries should specialise in commodities in which they have a relative rather than absolute advantage; The H