Pursuing Manufacturing-Based Export-Led Growth: Are developing countries increasingly crowding each other out? Arslan Razmi

This study empirically investigates the presence of ”crowding out” effects emerging from intra-developing country competition in export markets for manufactured goods. Export equations are estimated for a panel consisting of twenty two major developing country exporters of manufactures, after constructing trade-weighted price and quantity indices based on their exports to thirteen major high-income countries. The results, which are robust to various price and expenditure measures, suggest the presence of significant demand-side constraints on export growth, and that rapid Chinese export growth has had a noticeable impact in this regard. The estimated effects vary across time periods, SITC categories, and export destinations.

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