Few notes on export-Led economies

Innovation-invention difference.
LT: Low- Tech = footwear, toys, textile, garments, food processing
MT: Medium-Tech = automobile, basic chemicals, heavy industry, durable goods
HT: High-Tech= Pharmaceuticals, electronics, high chemicals,
fertilizers
LT: can be diversified and improved (see fashion industry in
developed countries= artistic, creative and high skilled labour)
MT: requires a lot time to develop consequence of import
substitution sometimes
HT: High skilled labour to develop the core idea (e.g. softwares,
Apple products) but the assembling process doesnt need skilled
labour.
Three patterns in industrialisation and export:
Main Type of
Export 1980s
Hong Kong
LT- Laissez fare
Korea
LT + R&D +
infant industry
Tigers
Taiwan
LT+HT +R&D +
infant
Singapore
RB+HT + MNC
+FDI
Indonesia
RB-LT FDI
New tigers
Thailand
RB+LT
Malaysia
RB+HT + FDI
China
LT
The Giants
India
RB+LT
Mexico
MT+HT
Latin America Brazil
RB+LT+MT IS
Argentina
RB IS

Main Type of
Export 1990s
LT+HT
LT+MT+HT
LT+MT+HT
HT+MNC + FDI
LT+RB+ FDI
LT
HT + FDI
LT
RB+LT
MT+HT
MT+LT FDI MNC
RB+MT

IS: Import-Substitution = when a country tries to reproduce

domestically products (e.g. computers, mobile phones etc)
FDI: Foreign Direct Investment Foreign funds applied to develop
specific industries with great power over companys decisionmaking process.
MNCs: Multinational Led = when a country opens its frontiers to
multinationals. Could be a way to learn by doing e.g. employees

get to know how to make a product (e.g. iPhone) and potentially

reproduce it.