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Effects of Primary Exports on Industrial Exports and GDP: Empirical Evidence
Author(s) -
Xu Zhenhui
Publication year - 2000
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00097
Subject(s) - economics , promotion (chess) , international economics , empirical evidence , monetary economics , primary sector of the economy , developing country , international trade , economy , economic growth , tertiary sector of the economy , philosophy , epistemology , politics , political science , law
This paper analyzes the effects of the growth of nonfuel primary exports on the growth of industrial exports and GDP in 74 economies between 1965 and 1992. There is clear evidence of positive effects, both in the short term and in the long term, of the growth of primary exports on the growth of industrial exports and GDP in more than two‐thirds of the economies. Therefore, governments in developing countries should not discriminate against the export of primary products, as some earlier studies suggest. Instead, they should adhere to policies that aim at export promotion.