Diversification versus Polarization: Role of industrial

Diversification versus Polarization: Role of industrial policy in Asia

and the Pacific

Sudip Ranjan Basu*International Trade DivisionUNCTAD

TOWARDS A RETURN OF INDUSTRIAL POLICY?ARTNeT SYMPOSIUM

25-26 JULY 2011ESCAP, BANGKOK

1

Diversification versus Polarization:

Role of industrial policy in

Asia and the Pacific

TOWARDS A RETURN OF INDUSTRIAL POLICY?

UN ESCAP ARTNeT SYMPOSIUMBangkok, Thailand

25-26 July 2011

Sudip Ranjan Basu*

International Trade Division

UNCTAD

*The views expressed in this presentation are those of the author and do not necessarily reflect the

views of the UNCTAD Secretariat or its members.

2

A comparative scale: World, Asia-Pacific and Sub-regions in manufacturing

Measuring Export Diversification and Polarization

Results and analysis

Way forward

OutlineIndustrial policy, trade and development

3

Industrial policy, trade and

development

• capacity and expand structure

Searching for Industrial Policy (IP)(web accessed as on 25 June 2011)

Google

Scholar

0

50

100

150

200

250

300

350

400

450

500

550

600

1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

Num

ber o

f Sea

rch

Resu

lts

Year

Google Scholar

Industrial Policy Macroeconomic Policy Trade Policy

Source: SRBasu-2011

Rosenstein-Rodan (1943)

Hirschman (1958)

Prebisch (1959)

Baldwin (1969) Krueger (1974) Pack (1993)

Lall (2004)

Rodrik (2007)

Lin (2009)

Infant industry

protection,

state-ownership and

state coordination

Trade liberalization ,

privatization and attracting

FDI : macroeconomic

Stability ‘getting prices

right’ and minimum

government interference

Government Policy Design

Innovation,

technological

catching up and

exports capability

Components of IP

Policy

interventionProductive

capacitydevelopment

Enterprise

development

- Import tariffs, quotas &

licences

-Export subsidies, trade

financing

-Tax breaks

- Special economic zones

- Privatization of firms

-Physical capital

- Human capital

- Labour training & skill

formation

-Innovation policies

- R&D investment

- Developing high-tech

products, innovation

- FDI incentives

-Domestic financing

-Public-private partnership

-SME cluster formation

-Management capacity

development

-Competition policy

-Marketing and promotion

Government

intervention

• Recent papers – Lall (2000), Wood and Mayer (2001), Lederman and Maloney (2003), Imbs

and Wacziarg (2003), Hausman and Rodrik (2003), Collier (2003)

– Sachs et al. (2004) , Hausman, Hwang and Rodrik (2005), Melitz and

Ottaviano(2005), Rodrik (2006), UN Africa (2007)

– Cadot, et al (2008) , World Bank (2009) , UN DESA (2006, 2010)

– UNCTAD (2002, 2008, 2009 and 2010) ,Basu and Das (2010), Basu (2011)6

Theory and EmpiricsIP & Diversification

• Structural change and Export diversification

• Welfare impacts: economic growth and employment creations • Sectoral implications: Depending on the institutional linkages and stages of development, welfare implications tend to be higher in high skilled/technology content industries, and new issues related to intensive and extensive margin •Domestic economic linkages: Forward and backward linkages with domestic firms leading to a productive capacity and expand structure

Policy and Outcomes

7

UNCTAD TDI model

Source: UNCTAD 2007

8

A comparative scale:

World, Asia-Pacific and Sub-

regions in manufacturing

• Benchmarking outcomes: Asia-Pacific to RoW

– Share of manufacturing/GDP

– Comparing Asia-Pacific with other regions

• Sub-regional outcomes for regional coordination

– Process of catching-up across regions

• Manufacturing and GDP – Positive correlation of manufactures with GDP per capita

• Composition of exports

– Climbing-up skill and technology contents of exports

• Dynamic shifts of quality of exports9

Key descriptive findingsMessages

10

Benchmarking Asia-PacificManufacturing

11.210.3

14.313.4

14.1 13.9

20.3

17.8

0

5

10

15

20

Manufa

ctu

rin

g

Africa Americas Asia Europe

Source:UN,SRBasu-2011

(% of GDP, world by regions, averages)

Manufacturing contributions to GDP

1993-2000 2001-2008

11.2

10.3

14.113.3 13.3 13.5

0

5

10

15

Manufa

ctu

rin

g

Africa Americas Asia


(% of GDP, developing world by regions, averages)

Manufacturing contributions to GDP

1993-2000 2001-2008

11

Sub-regions in ManufacturingOverview

9.7 9.4

17.3

13.3

4.4 4.3

48.145.9

3.2 3.1

0

10

20

30

40

50

Non-f

uel P

rim

ary

Com

moditi

es

Eastern Asia Pacific South Asia Southeast AsiaWestern Asia


(% of GDP, Asia-Pacific regions, averages)

Primary Commodities contributions to GDP

1993-2000 2001-2008

1.7

4.4

0.7

2.31.7 1.7

12.4

14.7

0.9

2.0

0

5

10

15R

eso

urc

e a

nd L

abor-

inte

nsi

ve M

anufa

cture

s




Resource and Labor-intensive Manufactures contributions to GDP

1993-2000 2001-2008

6.0 6.3

1.9 1.1

6.7 7.4

41.743.0

2.7

5.5

0

10

20

30

40

Low

-skill and T

echnolo

gy Inte

nsiv

e M

anufa

ctu

res




Low-skill and Technology Intensive Manufactures contributions to GDP

1993-2000 2001-2008

4.67.5

1.5 2.3 1.4 1.6

46.7

83.0

4.16.3

0

20

40

60

80

Mediu

m-s

kill and T

echnolo

gy Inte

nsiv

e M

anufa

ctu

res




Medium- skill and Technology Intensive Manufactures contributions to GDP

1993-2000 2001-2008

3.76.9

0.2 0.3 0.2 0.9

67.7

80.5

1.1 1.7

0

20

40

60

80

Hig

h-skill and T

echnolo

gy Inte

nsiv

e M

anufa

ctu

res




High- skill and Technology Intensive Manufactures contributions to GDP

1993-2000 2001-2008

12

GDP and ManufacturingCorrelating

AGO ALBARG

ATG

AUT

BDI

BEL

BEN BFABGR

BHS

BLRBLZBOL

BRA

BRB

BWACAF

CAN

CHE

CHLCIV

CMRCOG COLCOM CPV

CRI

DEU

DJIDMA

DNK

DOMDZAECU EGYERI

ESP

EST

ETH

FINFRA

GAB

GBR

GHAGINGMB GNB

GNQ

GRC

GRDGTMGUY HND

HUN

IRL

ISL

ITA

JAMKEN

KNA

LBR

LBYLCA

LSO

LTU

LUX

LVAMAR MDAMDG

MEX

MLI

MLT

MOZMRTMUS

MWINAM

NERNGA NIC

NLD

NOR

PAN PERPOL

PRT

PRYRUS

RWASDN SENSLESLVSTP

SURSVK

SVN

SWE

SWZ

SYC

TCDTGO

TTO

TUNTZAUGA UKR

URY

USA

VCT VENZAFZMB ZWEAFG

ARE

ARM

AUS

AZE BGD

BHR

BRN

BTN CHNFJIGEO

HKG

IDNINDIRNIRQ JOR

JPN

KAZKGZKHMKIR

KOR

KWT

LAOLBN

LKA

MAC

MDVMHLMMRMNG

MYS

NCL

NPL

NZL

OMN

PAK PHL

PLW

PNG

SAU

SGP

SLB SYR THATJKTKMTON

TUR

UZB VNMVUT WSMYEM0

200

00

400

00

600

00

800

00

GD

P pe

r c

apita

(U

SD

20

05

)

0 10 20 30 40Manufactures

Rest of world Asia-Pacific

Fitted values


(Manucaturing % of GDP, averages, 1993-2008)

GDP per capita and Manufactures

AGO

ARG

ATG

BDIBEN BFA

BHS

BLZBOL

BRA

BRB

BWA

CAF

CHLCIV

CMRCOGCOL

COM CPVCRI

DJI

DMA DOMDZAECUEGYERIETH

GAB

GHAGINGMB GNB

GNQGRD

GTMGUY HNDJAM

KEN

KNA

LBR

LBYLCA

LSOMARMDG

MEX

MLI MOZMRT

MUS

MWINAM

NERNGA NIC

PANPER

PRYRWASDN SENSLESLV

STPSUR SWZ

SYC

TCDTGO

TTO

TUNTZAUGA

URYVCT

VENZAF

ZMB ZWEAFG

ARE

BGD

BHR

BRN

BTN CHNFJI

HKG

IDNINDIRN

IRQJOR

KHMKIR

KOR

KWT

LAO

LBN

LKA

MAC

MDVMHLMMRMNG

MYS

NCL

NPL

OMN

PAK PHL

PLW

PNG

SAU

SGP

SLB SYR THATON

TUR

VNMVUT WSMYEM0

100

00

200

00

300

00

400

00

500

00

GD

P p

er c

apita

(U

SD

20

05

)

0 10 20 30 40Manufactures

Rest of world Asia-Pacific

Fitted values


(Manucaturing % of GDP, developing world, averages, 1993-2008)

GDP per capita and Manufactures

13

Sub-regional variations (per capita exports, ppp $)

Primary

261.0286.8

442.8

352.9

104.4

148.2

497.3518.3

174.5194.7

0

100

200

300

400

500

No

n-fue

l P

rim

ary C

om

mod

itie

s



(Per capita US dollars, Asia-Pacific, average of 1993-2008)

Regions

1993-2000 2001-2008

CHNIND

IDNJOR

KOR

LBNMYS

PAKPHL

THA

TUR

VNMBGDBTN

KHM

FJIKIRLAO

MDVFSM MNGNPL

PNGWSM

SGP

SLBLKATON VUT

0

10

00

02

00

00

30

00

04

00

00

GD

P p

er

cap

ita

0 500 1000 1500 2000Non-fuel Primary Commodities

Emerging Asia Rest of Asia

Fitted values


(Per capita US dollars, Asia-Pacific, 1993-2008)

GDP and Non-fuel Primary Commodities

CHN

IND

IDN

JOR

LBN

MYS

PAKPHL

THA

TUR

VNM

BGD

BTN

KHM

FJI

KIR

LAO

MDV

FSMMNG

NPL

PNG

WSM

SLB

LKATON VUT

0

20

00

40

00

60

00

80

00

10

00

0

GD

P p

er

cap

ita

0 500 1000Non-fuel Primary Commodities


Fitted values



GDP and Non-fuel Primary Commodities

14


Labour

133.9

198.4

21.9

48.837.2

50.6

220.5

326.1

57.2

154.0

0

100

200

300

400

Re

sou

rce

an

d L

abo

r-in

ten

siv

e M

an

ufa

ctu

res

Eastern Asia Pacific South Asia Southeast Asia Western Asia



Regions

1993-2000 2001-2008

CHNIND

IDNJOR

KOR

LBNMYS

PAKPHL

THA

TUR

VNMBGDBTN

KHM

FJIKIRLAOMDVFSM MNGNPL

PNGWSM

SGP

SLBLKATONVUT

0

10

00

02

00

00

30

00

04

00

00

GD

P p

er

cap

ita

0 500 1000 1500Resource and Labor-intensive Manufactures


Fitted values



GDP and Resource and Labor-intensive Manufactures

CHN

IND

IDN

JOR

LBN

MYS

PAKPHL

THA

TUR

VNM

BGD

BTN

KHM

FJI

KIR

LAO

MDV

FSMMNG

NPL

PNG

WSM

SLB

LKATONVUT

0

20

00

40

00

60

00

80

00

10

00

0

GD

P p

er

cap

ita

0 100 200 300 400Resource and Labor-intensive Manufactures


Fitted values



GDP and Resource and Labor-intensive Manufactures

15


Low skill and

technology

444.8

522.5

65.239.7

132.6172.7

523.5

706.4

226.5

394.1

0

200

400

600

800

Low

-skill an

d T

ech

nolo

gy In

ten

siv

e M

an

ufa

ctures




Regions

1993-2000 2001-2008

CHNIND

IDNJOR

KOR

LBNMYS

PAKPHL

THA

TUR

VNMBGDBTN

KHM

FJIKIRLAO

MDVFSMMNGNPL

PNGWSM

SGP

SLB LKATONVUT

0

1000

020

000

3000

040

000

GD

P p

er c

apita

0 1000 2000 3000Low-skill and Technology Intensive Manufactures


Fitted values



GDP and Low-skill and Technology Intensive Manufactures

CHN

IND

IDN

JOR

LBN

MYS

PAKPHL

THA

TUR

VNM

BGD

BTN

KHM

FJI

KIR

LAO

MDV

FSMMNG

NPL

PNG

WSM

SLB

LKATONVUT

0

20

00

40

00

60

00

80

00

10

00

0

GD

P p

er

cap

ita

0 200 400 600 800Low-skill and Technology Intensive Manufactures


Fitted values



GDP and Low-skill and Technology Intensive Manufactures

16


Medium skill and

technology

536.5

1197.3

43.4 86.0 30.2 43.8

1451.5

2812.5

209.9

437.3

0

1,000

2,000

3,000

Me

diu

m-skill a

nd T

echn

olo

gy Inte

nsiv

e M

anu

factu

re

s




Regions

1993-2000 2001-2008

CHNINDIDNJOR

KOR

LBNMYS

PAKPHL

THA

TUR

VNMBGDBTNKHM

FJIKIRLAOMDVFSMMNGNPLPNG

WSM

SGP

SLBLKATONVUT

0

1000

020

000

3000

040

000

GD

P p

er c

apita

0 5000 10000 15000Medium-skill and Technology Intensive Manufactures


Fitted values



GDP and Medium-skill and Technology Intensive Manufactures

CHN

IND

IDN

JOR

LBN

MYS

PAKPHL

THA

TUR

VNM

BGD

BTN

KHM

FJI

KIRLAO

MDV

FSMMNG

NPL

PNG

WSM

SLBLKATONVUT

0

20

00

40

00

60

00

80

001

00

00

GD

P p

er

ca

pita

0 500 1000 1500Medium-skill and Technology Intensive Manufactures


Fitted values



GDP and Medium-skill and Technology Intensive Manufactures

17


High skill and

technology

485.4

996.4

4.3 8.1 4.6 31.1

3775.6

5409.6

48.8 92.3

0

2,000

4,000

6,000

Hig

h-skill an

d T

ech

nolo

gy In

ten

siv

e M

an

ufa

ctures




Regions

1993-2000 2001-2008

CHNINDIDNJOR

KOR

LBNMYS

PAKPHL

THA

TUR

VNMBGDBTNKHM

FJIKIRLAOMDVFSMMNGNPLPNGWSM

SGP

SLBLKATONVUT

0

1000

020

000

3000

040

000

GD

P pe

r cap

ita

0 10000 20000 30000High-skill and Technology Intensive Manufactures


Fitted values



GDP and High-skill and Technology Intensive Manufactures

CHN

IND

IDN

JOR

LBN

MYS

PAKPHL

THA

TUR

VNM

BGD

BTN

KHM

FJI

KIRLAO

MDV

FSMMNG

NPL

PNG

WSM

SLBLKATONVUT

0

2000

4000

6000

8000

1000

0

GD

P p

er c

apita

0 1000 2000 3000 4000 5000High-skill and Technology Intensive Manufactures


Fitted values



GDP and High-skill and Technology Intensive Manufactures

18

Density estimates (per capita exports, ppp $)

Primary0

.1.2

.3.4

0 2.4 4.8 7.2 9.6 12

log(primary, per capita)

1993 2000

2008

Source: UN, SRBasu-2011

(Asia-Pacific Region)

Density curves for Non-fuel primary commodities

0.1

.2.3

.4

0 2.4 4.8 7.2 9.6 12

Log (primary commodities, per capita)

1993-2000 2001-2008


(Asia-Pacific Region, average of the period)

Density curves for Non-fuel primary commodities

19


Labour0

.05

.1.1

5.2

.25

0 2.4 4.8 7.2 9.6 12

Log (Resource & Labour, per capita)

1993 2000

2008



Density curves for Resource & Labour-intensive manufactures

0

.0

5.1

.1

5.2

.2

5

0 2.4 4.8 7.2 9.6 12

Log (Resource & Labour, per capita)

1993-2000 2001-2008



Density curves for Resource & Labour-intensive manufactures

20


Low skill and

technology

0.1

.2.3

.4

0 2.4 4.8 7.2 9.6 12

Log (Low, per capita)

1993-2000 2001-2008



Density curves for Low skill & technology intensive manufactures

0.1

.2.3

.4

0 2.4 4.8 7.2 9.6 12

Log (Low, per capita)

1993 2000

2008



Density curves for Low skill & technology intensive manufactures

21


Medium skill and

technology0

.05

.1.1

5.2

0 2.4 4.8 7.2 9.6 12

Log (Medium, per capita)

1993 2000

2008



Density curves for Medium skill & technology intensive manufactures

0

.05

.1.1

5.2

0 2.4 4.8 7.2 9.6 12

Log (Medium, per capita)

1933-2000 2001-2008



Density curves for Medium skill & technology intensive manufactures

22


High skill and

technology

0

.05

.1.1

5

0 2.4 4.8 7.2 9.6 12

Log (High, per capita)

1993-2000 2001-2008



Density curves for High skill & technology intensive manufactures

0

.05

.1.1

5.2

0 2.4 4.8 7.2 9.6 12

Log (High, per capita)

1993 2000

2008



Density curves for High skill & technology intensive manufactures

23

Measuring Export Diversification

and Polarization

24

• Understanding quality and composition of exports

• Skill and Technology contents of exports sectors

• Diversification index: 0=least diversified, and 1=most diversified

-Non-fuel Primary commodities

-Labour intensive and resource based manufactures

-Manufactures with low skill and technology intensity

-Manufactures with medium skill and technology intensity

-Manufactures with high skill and technology intensity

-Energy products

-Unclassified products

Tool: 1Measuring Diversification (exports)

• Gini coefficient of inequality

• Generalized entropy class (GE)• to allow inequality across groups to be broken down into

within group inequality and between group inequality

• Polarization index as ratio of between group inequality

in total inequality (within group inequality + between

group inequality)

– Basu, Fan and Zhang 2007 and Basu 2009

• Shorrocks decomposition• Total inequality into inequality contributions from each

of the factors of total exports

25

Inequality and PolarizationTool: 2

26

• Exports composition: Shifting exports from primary commodities to skill-technology manufactures

• Computations to estimate exports patterns: – Overall inequality

– Spatial inequality

– Sources of inequality

• Data/Sample: 29 countries (21 Asia, 8 Pacific)

– 12 Emerging countries, 10 LDCs, 8 ASEAN, 18 Tropical

• Time periods: 1993 to 2008

• Trade database

– UNCTAD South-South Trade Information System (SSTIS)

– Product Classification at HS-4 digit level and Basu (2010, 2011)

Testing hypothesis Data sets

27

Results and Analysis

• Inequality:

– Regions: Different sub-regions progress differently

– Income level: LDCs, SIDS, ASEAN indicate

– Sectors : Sectoral differences remain within sub-regions

and income level

• Polarization:

– Regions: Pacific, South East &East, South Asia

– Income: Emerging, LDCs, SIDS

– Geography: Tropocal

28

Explorative resultsPolicy Messages

Uneven development of manufacturing in Asia-Pacific

Asia-Pacific exports inequality (per capita, by skill and technology contents)

29

Percent

1: Gini

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

Primary Labour Low Medium HighSource: SRBasu-2011

Pacific regions exports inequality (per capita, by skill and technology contents)

30

Percent

Pacific region

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

Primary Labour Low Medium High

Emerging Asia’s exports inequality (per capita, by skill and technology contents)

31

Percent

Emerging Asia

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


ASEAN exports inequality (per capita, by skill and technology contents)

32

Percent

ASEAN

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


GAP

LDCs exports inequality (per capita, by skill and technology contents)

33

Percent

Low income

0

10

20

30

40

50

60

70

80

90

1001

99

3

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


GAP

SIDS exports inequality (per capita, by skill and technology contents)

34

Percent

Small islands

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


GAP

LDCs & SIDS exports inequality (per capita, by skill and technology contents)

35

Percent

LDCs and SIDS

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


Asia-Pacific sub-regional exports inequality

(per capita, by skill and technology contents)

36

Percent

Primary

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

South East & South East Pacific

GAP



37

Percent

Labour

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


GAP



38

Percent

Low

GAP

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


GAP



39

Percent

Medium

GAP GAP

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


GAP



40

Percent

High

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


GAP

Pacific and rest of Asia’s exports(per capita, by skill and technology contents)

41

Percent

2: Polarization

0

1

2

3

4

5

6

7

8

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


South-East & East and rest of Asia’s exports


42

Percent

Regions

0

10

20

30

40

50

60

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


South Asia and rest of Asia’s exports


43

Percent

Regions

0

10

20

30

40

50

60

70

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


ASEAN and rest of Asia’s exports


44

Percent

Regions

0

10

20

30

40

50

60

70

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


Emerging economies and rest of Asia’s exports


45

Percent

Income

-5

0

5

10

15

20

25

30

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


LDCs and rest of Asia’s exports


46

Percent

Income

0

2

4

6

8

10

12

14

16

18

20

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


SIDS and rest of Asia’s exports


47

Percent

Size

0

1

2

3

4

5

6

7

8

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


Tropical Asia and rest of Asia’s exports


48

Percent

Physical Geography

0

10

20

30

40

50

60

70

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08


49

Way forward

50

• Asia-Pacific regions shared development leveraging on export-led growth

•Inequality in skill-technology contents remains and is reducing unevenly depending on stage of development

• Emerging economies play key role to improve conditions

Regional polices

•Policies to Capability development to identify new and dynamic sectors, and help discovery process

•Inter- ministerial coordination and policy coherence

•Identifying Priority sectors for skill-technology development

National Strategies

•Providing incentives depending on industry and sectoralcluster, integration, competitiveness

•Investment in infrastructure, education and productive capacity building should remain high

Industrial Policies

•Global policy coordination on skill and technology development

•Regional funds to promote capability and capacity development

•‘Industrial Policy’ and Productive Capacity development for growth with Equity agenda

What’s next Globally?

Summary

51

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Documents

Diversification versus Polarization: Role of industrial