Trade Prospects for Developing Countries after the Rise in Oil Prices
In Chapter 4, Jan Tumlir drew attention to the transfer problem that will develop as a result of vast surplus revenues accumulating in oil-exporting countries. He suggested that the problem might be overcome through the investment of petro-dollars in developing countries, pointing out that it is unlikely to take place though if the products of that investment are excluded from the markets of developed countries. What is called for is a reform of commercial and industrial policies in the industrialised world to effect a shift from developed to developing countries of manufacturing activities in which the latter have a comparative advantage by virtue of large reservoirs of low-cost labour. In Chapter 9, George Ray urges that developed countries should move out of those industries which in order to compete have become, under the influence of heavy protection, very capital-intensive, so that resources can be released for technologically more advanced industries.1
KeywordsManufacture Export Primary Commodity Standard International Trade Classification Import Bill Commodity Boom
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Notes and References
- 6.Hollis Chenery, “Restructuring the World Economy”, Foreign Affairs, New York, December 1974.Google Scholar
- 10.John Pincus, Foreign Aid and International Cost Sharing (Baltimore: Johns Hopkins Press, 1965).Google Scholar
- 14.David Wall, “Opportunities for Developing Countries”, in Harry G. Johnson (ed.), Trade Strategy for Rich and Poor Countries (London: Allen & Unwin, for the Trade Policy Research Centre, 1971) p. 36.Google Scholar