Development and Globalization: - Unctad

OVERVIEW DEFINITIONS
During the last four decades, the share of primary
commodities in total world exports of merchandise has
fallen dramatically. Primary commodities, excluding fuels,
represented 38% of the value of world exports in 1960 and
only 12% in 2001. In developing countries, the share was
initially 63%, but by 2001 it had fallen to 13%. In 1960,
food items represented 17% of world exports, while in
2001 they accounted for only 7%. A similar drop occurred
for agricultural raw materials. These patterns held true for
both developed and developing countries. The only
exception is exports of ores and metals, whose share
remained fairly constant.
Developing countries have increased their share in the
world trade of manufactured goods. South-East Asian
countries were the main contributors to this trend. The
share of manufactured goods in developing-country
exports increased from 12% in 1960 to 65% in 2001. The
share of manufactures in world exports to developing
countries also increased substantially, from 62% in 1980
to 74% in 2001. This trend underscores the intensification
of trade in manufactures among developing countries.
The share of manufactured goods in developed countries’
overall exports increased from 65% in 1960 to 80% in
2001. However, the rate of increase was slower than that
for developing countries. Consequently, the share of world
manufactured goods imported from developed countries
by other economies decreased during the last 40 years,
from 83% in 1960 to 69% in 2001. The remaining shares
were imported from developing countries (27.5% in 2001
compared to 5.5% in 1960) and Central and Eastern
Europe (3.5% in 2001 compared to 11% in 1960).
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4.2 International trade in merchandise
Commodities are classified in accordance with the United
Nations Standard International Trade Classification (SITC),
as follows:
● Primary commodities:
- All food items: SITC 0, plus SITC 1, plus 22, plus SITC 4
- Agriculture raw materials: SITC 2, less 22, less 27 – 28
- Ores and metals: SITC 27, plus 28, plus 68
- Fuels: SITC 3
● Manufactured goods:
- Chemicals and related products: SITC 5
- Manufactured goods classified chiefly by material:
SITC 6 less 68
- Machinery and transport equipment: SITC 7
- Miscellaneous manufactured articles: SITC 8
DATA SOURCES
[1] UNCTAD Handbook of Statistics 2003, tables 3.2.1 and 3.2.2.
Some exports are not allocated to a commodity group. The sum of
shares in the distribution of exports by commodity group may be less
than 100.
For more information, see UNCTAD’s TTrraaddee aanndd DDeevveellooppmmeenntt RReeppoorrtt 22000022:: DDeevveellooppiinngg CCoouunnttrriieess iinn WWoorrlldd TTrraaddee.