Export-Oriented Industrialisation: The ASEAN Experience

288 Pages·2010·18.1 MB·English

by  Mohammed Ariff, Hal Hill

ROUTLEDGE LIBRARY EDITIONS:
DEVELOPMENT
EXPORT-ORIENTED
INDUSTRIALISATION
EXPORT-ORIENTED
INDUSTRIALISATION
The ASEAN Experience
MOHAMMED ARIFF
and
HAL HILL
Volume 49
Firstpublishedin1985
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EXPORT-ORIENTED
INDUSTRIALISATION: THE ASEAN
EXPERIENCE
MOHAMED ARIFF
AND HAL Hill
ALLEN AND UNWIN
Sydney London Boston
© Mohamed Ariff and Hal Hill 1985
This book is copyright under the Berne Convention. No reproduction
without permission. All rights reserved.
First published in 1985
Allen & Unwin Australia Pty Ltd
8 Napier Street, North Sydney NSW 2060
George Allen & Unwin (Publishers) Ltd
18 Park Lane, Hemel Hempstead, Herts HP2 4TE England
Allen & Unwin Inc.
8 Winchester Place, Winchester, Mass. 01890 USA
National Library of Australia
Cataloguing -in -Publication entry:
K.A. Mohamed Ariff, 1940-
Export-oriented industrialisation.
Includes index.
ISBN 0 86861 783 0 (pbk.).
1. ASEAN. 2. Asia, Southeastern-Commercial policy.
2. Asia, Southeastern-Economic policy. 3. Asia,
Southeastern-Industries. I. Hill, Hal. II. Title.
337.59
Library of Congress Catalog Card Number: 85-61869
Set in lO/llpt Times by
Graphicraft Typesetters Ltd., Hong Kong
Printed in Hong Kong by Color craft Ltd.
Contents
Tables vii
Figures xi
Abbreviations Xll
Preface xiv
1 Introduction 1
Layout and organisation 5
2 The export drive: an overview 7
From import substitution to export orientation 13
Profile of the manufacturing sector 25
Issues in export-oriented industrialisation with special
reference to ASEAN 34
Future prospects 56
Some policy considerations 65
3 Protection and market penetration 71
Protection for manufactures in ASEAN 72
ASEAN manufactured exports to developed countries:
protection and market access 99
Conclusion and policy implications 113
4 Government regulation and industrialisation 117
The role of governments in ASEAN: an overview 119
Theories of economic regulation 121
The objectives and tools of industrial regulation in
ASEAN 123
The system in practice and economic implications 129
The role of state enterprises 146
Conclusions and policy implications 151
5 Industrialisation and structural change 156
The dimensions of industrialisation in ASEAN 157
Changing comparative advantage and factor endowments 170
Changing comparative advantage: empirical evidence 179
Conclusions 194
v
VI EXPORT-ORIENTED INDUSTRIALISA nON
6 Manufactured exports: performance and shifts in comparative
advantage 196
The pattern and composition of exports 197
Export performance 209
Revealed comparative advantage 219
Conclusion 229
7 Conclusion and future prospects 230
The future outlook 232
Appendix 237
Notes 245
References 254
Index
of Subjects 265
of Names 268
Tables
2.1 Basic economic data: ASEAN and middle income developing
countries 8
2.2 Production structure of ASEAN economies 8
2.3 Commodity composition of ASEAN trade 1960s to 1980s 9
2.4 ASEAN: data relating to international finance 11
2.5 External debt, selected developing countries 12
2.6 Structure of ASEAN manufacturing value added,
1970-1980 27
2.7 Total net resource flows to Western Pacific developing
countries, 1969-1982 30
2.8 Foreign investment in ASEAN by major investor
country/region 32
2.9 Direct foreign investment in ASEAN manufacturing by major
industry group, 1972-1982 33
2.10 Basic data on export processing zones in ASEAN
countries 35
2.11 Employment-output elasticities in ASEAN
manufacturing 42
2.12 ASEAN manufactured exports to OECD markets and
employment, 1975-1980 43
2.13 ASEAN: direct and total employment coefficients, 1975 45
2.14 ASEAN manufacturing sector: share of wages in gross value
added, 1975 47
2.15 ASEAN manufacturing sector: input structure, 1975 49
2.16 ASEAN manufacturing sector: weighted average measures of
spread effects, 1975 51
3.1 Comparison of simple averages of tariff rates in ASEAN,
1978 80
3.2 Nominal and effective protection in ASEAN and Northeast
Asia, mid 1970s 82
3.3 Indonesia: effective rates of protection by major product
group, 1971-1980 85
Vll
Vlll EXPORT-ORIENTED INDUSTRIALISATION
3.4 Malaysia: nominal and effective rates of protection by product
category, 1965-1978 86
3.5 Philippines: nominal and effective rates of protection by
product category, 1961-1980s 88
3.6 Singapore: nominal and effective rates of protection, 1966,
1967 and 1979 89
3.7 Thailand: selected nominal and effective tariffrates, 1974,
1978 and 1982 90
3.8 Protection rates and import penetration ratios:
ASEAN 97
3.9 Major developed countries: m.f.n. tariffs 102
3.10 Market penetration of manufactures in industrially advanced
countries, 1970-1980 108
3.11 Growth and market penetration of ASEAN manufactures by
major importing country, 1970-1980 108
3.12 Growth and market penetration of ASEAN manufactures by
product group in industrially advanced countries,
1970-1980 109
3.13 ASEAN manufactured exports: import penetration ratios in
industrially advanced countries, 1970-1980 111
3.14 ASEAN manufactured exports: import penetration ratios in
industrially advanced countries by product and country,
1980 112
4.1 Government expenditure and employment, ASEAN, India
and Korea 120
4.2 State enterprises in selected Indonesian manufacturing
industries, 1974 148
5.1 Comparative industrialisation indicators, ASEAN, India,
Korea 158
5.2 Indices of structural change in manufacturing, ASEAN and
other countries, 1970s 162
5.3 Size distribution of Singapore manufacturing
1965-1982 166
5.4 Size distribution of Malaysian manufacturing
1968-1981 167
5.5 Size distribution of Indonesian manufacturing
1964-1974 167
5.6 Size distribution of Philippine manufacturing,
1961-1975 168
5.7 The growth of ASEAN manufactured exports,
1962-1982 169
5.8 Export-output ratios of ASEAN manufacturing,
1970-1980 169