Export catalysts in low-income countries
1990
Rhee, Yung W. | Bélot, Thérèse
Significant research is needed in the design and implementation of outward-looking development strategies, recognizing that the supply response must come from individual firms. However, in studying industrial development policy issues, one often become over-influenced by a preconceived model, leaving out the most critical aspect, i.e. real world experience in the intricacies of the industrial development process in low-income countries. The approach taken here gives the highest priority to finding the real stories on the development process at the firm or factory level. In all the cases reviewed, the most critical ingredient for successful entry in the international markets was nearly always the presence of foreign and/or domestic catalysts. The catalyst model of development that emerges from the analysis of eleven export success stories aims at providing feasible and practical answers to questions about workable development strategies for low-income countries. To that end, the catalyst model of development is a model for initiating and transmitting outward-oriented development and for sequencing realistic policy reforms, starting from "equal footing" export incentives, in parallel with increasing industrial competence gained through world market competition.
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