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Measuring success in the global economy - W.E. Upjohn Institute for ...

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contribut<strong>in</strong>g <strong>in</strong>dustries to each category (agro-<strong>for</strong>est products,<br />

textile and apparel, automotive, and electronics) are broken out to<br />

simplify <strong>the</strong> analysis.<br />

Table 1. Lall’s technological classification of exports<br />

Primary products (PP)<br />

Classification<br />

Examples<br />

Fresh fruit, meat, rice, cocoa, tea, coffee, wood,<br />

coal, crude petroleum, gas<br />

Manufactured products<br />

Simple<br />

Manufactures<br />

Complex<br />

Manufactures<br />

O<strong>the</strong>r transactions<br />

RB: Resource based manufactures<br />

RB1: Agro/<strong>for</strong>est based products<br />

RB2: O<strong>the</strong>r resource based products<br />

LT: Low technology manufactures<br />

LT1: Textile/fashion cluster<br />

LT2: O<strong>the</strong>r low technology<br />

MT: Medium technology manufactures<br />

MT1: Automotive products<br />

MT2: Medium technology process<br />

<strong>in</strong>dustries<br />

MT3: Medium technology<br />

eng<strong>in</strong>eer<strong>in</strong>g <strong>in</strong>dustries<br />

HT: High technology manufactures<br />

HT1: Electronics and electrical<br />

products<br />

HT2: O<strong>the</strong>r high technology<br />

Source: Lall (2000, p. 341).<br />

Prepared meats/fruits, beverages, wood products,<br />

vegetable oils<br />

Ore concentrates, petroleum/rubber products,<br />

cement, cut gems, glass<br />

Textile fabrics, cloth<strong>in</strong>g, headgear, footwear,<br />

lea<strong>the</strong>r manufactures, travel goods<br />

Pottery, simple metal parts/structures, furniture,<br />

jewellery, toys, plastic products<br />

Passenger vehicles and parts, commercial<br />

vehicles, motorcycles and parts<br />

Syn<strong>the</strong>tic fibres, chemicals and pa<strong>in</strong>ts, fertilizers,<br />

plastics, iron, pipes/tubes<br />

Eng<strong>in</strong>es, motors, <strong>in</strong>dustrial mach<strong>in</strong>ery, pumps,<br />

switchgear, ships, watches<br />

Office/data process<strong>in</strong>g/telecom equip, TVs,<br />

transistors, turb<strong>in</strong>es, power gen. eqp.<br />

Pharmaceuticals, aircraft, optical/measur<strong>in</strong>g<br />

<strong>in</strong>struments, cameras<br />

Electric current, c<strong>in</strong>ema film, pr<strong>in</strong>ted matter,<br />

special transactions, gold, works of art, co<strong>in</strong>s, pets<br />

In Figure 1, panel 1, we see that <strong>in</strong> 1988, 45% of Mexico’s total<br />

exports to <strong>the</strong> United States market were primary products, <strong>the</strong> most<br />

important of which was oil. In 1993, one year prior to <strong>the</strong> establishment<br />

of <strong>the</strong> North America Free Trade Agreement (NAFTA), mediumtechnology<br />

manufactures (ma<strong>in</strong>ly automotive products) and high-tech<br />

manufactures (largely electronics items) moved ahead of raw materials<br />

<strong>in</strong> Mexico’s export mix. By 2008, over 60% of Mexico’s exports of<br />

$234 billion to <strong>the</strong> United States market were <strong>in</strong> <strong>the</strong> medium- and hightechnology<br />

product categories, followed by primary products with 20%<br />

of all exports (which rebounded from <strong>the</strong>ir nadir of 10% of total exports<br />

<strong>in</strong> 2001) and low-technology manufactures (such as textiles, apparel,<br />

8 Transnational Corporations, Vol. 18, No. 2 (August 2009)

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