By Miria Pigato, Caroline Farah, Ken Itakura, Kwang Jun, Will Martin, Kim Murrell, T. G. Srinivasan
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Extra resources for South Asia's integration into the world economy
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IV Export Performance For countries that are opening up, export growth is essential for balanced integration in the world marketthat is, balanced and sustainable expansion in both imports and exports. 15 How did exports respond to these reforms? Based on past performance (growth rates, market shares, competitiveness and redirection of exports) some things stand out: 13 Technologically-advanced goods are defined as differentiated plus science-based goods. The classification is based on OECD (1987).
Incentives are given to exporters in the form of special bonded warehouses, export processing zones and duty drawbacks. Under the duty drawback scheme, direct and indirect exporters are exempt from import restrictions. Bonded warehouses allow exporting firms to import and stock duty-free inputs. There are two export processing zones (in Chittagong and Dhaka). 4 percent in 199697 and 87 percent in 199091). It also eliminated licensing requirements for about a third of 6 In India, before 1991, almost all imports were prohibited or licensed.
4 percent in the 1990s. 2). 4 percent reached in 198190. This was comparable to ratios in Sub-Saharan Africa and Eastern Europe and much higher than the 1 percent achieved by East Asia. Significantly, the deficit resulted mostly from rising current expenditures, while the ratio of public investments to GDP declined by about 1-2 percentage points. II South Asia and the Global Economy How much does South Asia participate in the world economy? 3 This is difficult to calculate, however, and indirect policy measures are often used instead (see Dollar 1992 and Easterly 1993).