There are indisputable concerns over the ineffective participation of Least-Developed Countries (LDCs) and Small Vulnerable Economies (SVEs) in the process of global integration, and their failure to derive benefits from the ongoing process of trade liberalisation and globalisation. The present paper explains the theme of 'marginalisation' of Least-Developed Countries (LDCs) and Small Vulnerable Economies (SVEs) in the international trade arena, in terms of their declining relative importance in world trade. Statistical analysis is used to determine the long-term declining share of LDCs and SVEs in world merchandise exports. The study argues that the process of marginalisation of these countries is mostly the result of the failure of LDCs and SVS to diversify from their static comparative advantage related to the production of primary products, the significance of which in world trade has declined considerably during the past decades. The analysis emphasises the need for diversification of exports and an expansion of the manufacturing export base in these countries.Bijit Bora, Roman Grynberg, Mohammed A. Razzaque ... This follows the classic Engela#39;s law, which explains the tendency of consumers to spend less on basic food products (or primary commodities) as their incomes rise. ... Between 1970 and 1993, real commodity prices more than halved (World Bank, 1994). 35 Then, these prices registered an annual average growth rate of 6 per cent during 1994- 97.
|Title||:||Marginalisation of LDCs and Small Vulnerable States in World Trade|
|Author||:||Bijit Bora, Roman Grynberg, Mohammed A. Razzaque|
|Publisher||:||Commonwealth Secretariat - 2004-01-01|