Commodity composition of trade in manufactures and south‐south trade potential

Using two different measures, the degree of correspondence between a country's export vector of manufactures and a trade partner's import vector is determined. These export‐import similarity measures are shown to contribute to an explanation of bilateral trade intensity. They are then used in computing an index of export potential in manufactures for 34 developing countries, and an index showing the potential to replace LDC imports presently originating from developed countries. Given the existing LDC commodity composition, the possibility of substituting imports of DC manufactures by LDC supplies ‐ for example, through preferential inter‐LDC trading ‐is found to be limited only.     

The North‐South dialogue revisited: Some personal reflections

This article focuses on the experiences of South Korea and the Philippines and examines the relationship of corruption to political and economic development. It argues that corruption is a manifestation of specific sets of state-society relations, political systems, development trajectories and types of external linkages. Corruption in these contexts should not be seen as pathological phenomena but as deeply integrated into the particular path of political and economic development. The article further identifies the context and scope for reform.     

Directed credit and investment in small‐scale industry in India: Evidence from firm‐level data 1965–78

Panel data on 788 modern sector Indian firms during 1965–78 are used to analyse the link between the size of a firm and its financial environment. Exogeneity tests reveal that large firms with improved investment prospects could obtain external finance at the margin, but that small firms could not. The policy of directing bank credit accordingly relaxed a binding constraint on small firms, raising investment. Assuming that all of the rise in the credit‐sales ratio in small firms was policy‐induced then so was about one third of the 170 per cent rise during 1965—78 in their investment—sales ratio.     

Traditional and small‐scale culture goods in international trade and employment

The literature in economics has relegated to an unimportant role the traditional and small‐scale industries in the process of development. Instead, manufacturing development is essentially seen as a transformation process from traditional to modern, from rural to urban and from agrarian to industrial. The main stress in development has been laid on industries with scale economies and positive externalities, and on the inducement of modern, capital‐intensive techniques. Small‐scale production has been taken to mean inefficient and backward; large‐scale production has become synonymous with the efficient and modern. Moreover, the consumer is characterized as preferring standardized products, while traditional goods are believed to be inferior and easily replaced by factory goods.     

The brain drain from low‐income countries

In the absence of adequate data on the brain drain from low‐income countries economists have had to be content with erecting an analytical framework and taking up preliminary positions on the issue. This paper attempts a critical review of thes positions against the background of such knowledge as is available. The value‐judgment underlying the ‘internationalists’ dismissal of the problem is identified, and the assumptions behind the argument that, even in ‘nationalist’ terms, poor countries usually benefit from brain drain are challenged. Part of the argument about its effects reduces to an argument about the size of the externalities generated by the educated; our ignorance about these should not be taken as proof of their non‐existence. It may be, in any case, that to try to measure the effects of the brain drain merely by counting the number of educated nationals abroad is to miss the whole point. The international mobility of a few categories, it is argued, is at the heart of the problem—which implies rather different policy measures from those that are usually suggested.     

The value of pointillism? Integrating trade and development and the European Union as a global actor

As the contributions to this volume make clear, the intersection between the European Union's (EU) trade and development policies is populated by a diverse array of policies. The EU's selection of policies reflects, in part, the level of development of the developing country and competing understandings of how to best foster development. The contributions also hint at significant contributions to wider debates about the EU as a global actor, particularly the extent to which it is motivated by normative considerations and how affective it is in achieving its objectives. This article reviews the main findings of the contributions to this volume and advances some suggestions so as to enable a clearer picture to emerge that could more readily inform wider debates.     

A farm‐sizewise analysis of irrigation distribution in India

This article analyses and describes the relationship between the size of operational holding on the one hand and various irrigation and irrigation‐related variables, on the hand, using cross‐section regression analysis of farm‐sizewise/statewise Indian data. The overall conclusion that emerges from the analysis is that irrigation development in India as a whole seems to be such that its propagation and diffusion among agricultural households seems to be somewhat in favour of larger farms. Even though the government predominantly controls the development and distribution of flow‐sources of irrigation, especially of canal irrigation, it does not seem to have produced any significant positive impact on reducing the level of inequity involved in the distribution of irrigation across farm‐size groups.     

The war‐making state and privatisation

States, created with the central purpose of defending national independence, resist the process of macro‐economic reform since it appears to limit their power to pursue this aim. The states of the former Centrally Planned Economies were marked out by their extreme subordination to the military drive, so the resistance to reshaping the ‘war‐making state’ into a ‘market‐facilitating state’ is considerable. The transition tends to be halted where the old structures of central control are ended without markets supplying alternative imperatives — a ‘rent‐seeking state’ is created. These themes are examined in relationship to privatisation of state owned enterprises in four countries: Russia, China, Vietnam and the Ukraine.     

North‐South trade and female labour in manufacturing: An asymmetry

A simple method of measuring the impact of North‐South trade on the female intensity of manufacturing is applied to data for developed and developing countries. The results confirm that growth of exports has increased the relative demand for female labour in the South. However, there does not appear to have been a general counterpart reduction in the relative demand for female labour in Northern manufacturing, even among blue‐collar workers. There are several possible reasons for the apparent conflict between these findings and other evidence that in Northern manufacturing females have been disproportionately displaced by trade with the South.     

The enterprise and industrial composition of new British portfolio foreign investment, 1865–1914

Source Material on the South African Economy 1860–1970 by H. Hobart Houghton and J. Dagut. Vol. 1, 1972, pp. 369; Vol. II, 1972, pp. 247; Vol. III, 1973, pp. 263. Cape Town: Oxford University Press.     

Are pre‐schoolers from female‐headed households less malnourished? A comparative analysis of results from Ghana and Kenya

This article compares household income level and pre‐schooler weight‐for‐age across household groupings that are differentiated by female headship variables which are reflective of the heterogeneity of female‐headed households. Data from Kenya indicate that it is the interaction of income and female headship at low‐income levels which promotes pre‐schooler nutritional status. For Ghana, incomes have to be quite large (in the upper tercile of the distribution) before a reduction in the child's likelihood of having a low weight‐for‐age is achieved through further income increases. We argue that an absence of complementary child health inputs is more likely for households in the Ghana sample, and that in this type of environment, differences in nurturing patterns, as proxied by headship status, will have a muted impact on child nutrition.     

Measuring trade strategy in the presence of non‐tradeables: Theory and some evidence for the Caribbean

This article models trade policies in the presence of non‐tradeables, and investigates trade strategy interventions and outcomes where the price of non‐tradeables endogenously adjusts to trade interventions. Trade regime bias and neutrality issues are examined within a three‐sector, open economy model. The theoretical framework is operationalised using empirical evidence for Trinidad and Barbados. The robustness of partial equilibrium measures of protection for classifying trade strategies is challenged and evidence on alternative general equilibrium or ‘true’ measures of protection is reported. ‘True’ or revealed trade strategies are shown to differ from those apparently intended by policy‐makers.     

The dual and the exchange‐constrained economy

Nelson's model of the exchange‐constrained economy is compared with Eckaus's model of the dual economy. The purpose of this comparison is to illustrate the similarity of the models in explaining unemployment of one factor as the result of the composition of demand and the scarcity of a second factor. Both authors agree to this point. However, Nelson emphasises that unemployment arises from price rigidity while Eckaus maintains that technological limits of substitution are also important. Policy implications differ depending on whether Nelson's or Eckaus's assumptions are accepted. Currie has suggested that the redistribution of income may reduce unemployment in both circumstances.