Myanmar's non-resource export potential after the lifting of economic sanctions : a gravity model analysis

Easing of economic sanctions by Western countries in 2012 augmented the prospect that Myanmar will expand its exports. On the other hand, a sharp rise in natural resource exports during the sanctions brings in a concern about the "Dutch disease". This study projects Myanmar's export potential by calculating counterfactual export values with an augmented gravity model that takes into account the effects of natural resource exports on non-resource exports. Without taking into account the effects of natural resource exports, the counterfactual predicted values of non-resource exports during 2004–2011 are more than five times larger than the actual exports. If we take into account the effects, however, the predicted values are smaller than the actual exports. The empirical results imply that the "Dutch disease" is at stake in Myanmar than any other Southeast Asian countries.

Clothing Export from sub-Saharan Africa : Impact on Poverty and Potential for Growth

Increases in clothing exports after 2000 signaled the first incidence of large-scale manufacturing exports from sub-Saharan Africa. Using firm-level information, this paper explores the potential of clothing exports for poverty reduction and further growth as seen in other low income countries. It shows that the garment exporting industries in Kenya and Madagascar have contributed poverty reduction in the short term by providing mass employment for female and less educated workers with wages beyond the poverty line. However, the long-term impact is not certain. High production costs and limited development of local firms weaken potential for further growth in the competitive world market. Upgrading of the market and improvement of efficiency are required to remain competitive for African industries, and governmental support for local participation are needed to facilitate technology transfer.

Can FDI promote export diversification and sophistication of host countries? : dynamic panel system GMM analysis

Recent trade literature highlights the importance of export diversification and upgrading in fostering faster and sustainable economic growth. This study investigates the impact of FDI inflow and stock on the level of export diversification and sophistication in host country's export baskets. By utilizing the dynamic panel data model, we find that the five-year lagged FDI inflow correlates positively with both export diversification and sophistication, and FDI stock makes the positive contribution to export sophistication. These findings provide support for the possibility of successful capabilities transfer to and building by local firms. We also find that these positive impacts of FDI exist only in developing countries.