World Bank Document

earnings. For some primary prod- counted for barely more than aFigure 3.4 Growth of developing ucts, the potential gains from quarter of the increase in theircountries' merchandise exports, increased processing can be ex- manufactured exports during 1963-by detiation, 17 7 re aggerated: some stages of processing 73, but almost half in 1973-77.certain commodities (for example, Most of such trade in manufac-Nonfuel Manufac- Ti nickel and bauxite) are highly tures is from more- to less-indusprimaryFuel tre Tol capital- or energy-intensive; others trialized developing countries, or_______ ;i V (for 00; example, some edible oils) between adjacent countries that; X 0°0:2:00B00 can cost less to transport in their are not otherwise major exportersTodevelopingcountriet ________ unprocessed form. This does not of manufactures. In the compo-12 ________810 t000 05¢¢X :0 necessarily mean that such pro- sition and characteristics of the______ f00 t0 j0cessing activities are unsuitable for products, south-south trade differss______ . 0 a developing country, but in these significantly from developing councasesa more careful evaluation of tries' manufactured exports to________________ X 00 t0 the costs and benefits is required. industrialized countries; in par-6 To industrialized- The decision to do more pro- ticular, it is more skill- and capitalcountriescessing, however, is seldom in the intensive, with a higher proportion4 _ hands of developing countries alone. made up of engineering and chem-2 The tariff structures of industrial- ical items (see Table 3.3). Trade injjjjj0