Export-Led Industrial Policy for Developing Countries

Investment Rating - The report does not explicitly provide an investment rating for the industry discussed Core Insights - The report emphasizes that governments can effectively identify tradable sectors where public inputs can accelerate growth, particularly in developing countries where targeting can be more valuable due to fewer productive sectors and less technology [4][10] - Export promotion agencies are highlighted as effective institutions for coordinating public inputs to grow strategic sectors, presenting a cheaper and less capture-prone alternative to protectionism [4][10] - The report outlines a framework for export-led industrial policy, focusing on the importance of targeting industries based on international market growth, competition, comparative advantage, technological relatedness, and competitive advantage [12][41] Summary by Sections What: Growth, Competition, and Productivity Potential as Guides for Industrial Policy - The report discusses various theories regarding which sectors are beneficial for development, including manufacturing and tradable services, while emphasizing the importance of targeting based on specific country contexts [15][16] - It identifies international market growth as a critical measure for targeting sectors, noting that countries should focus on expanding exports in growing markets [21][17] - The presence of international competition is discussed as a risk factor, suggesting that targeting sectors with tough competition may be higher risk [22][24] How: Implementing Export-Led Development Strategy - The report outlines that developing countries face challenges in pursuing industrial policies due to international trade rules, which often limit their ability to discriminate against foreign interests [44][46] - It suggests that developing countries can still pursue industrial policy by focusing on tariff negotiations, improving access to new customers and suppliers, and ensuring quality certification and standards [48][50][51] - The role of export promotion agencies is emphasized, with evidence showing that they can effectively support exporters by providing training, market analysis, and facilitating trade opportunities [51][52]