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Not only can they inflate asset bubbles and spur excessive borrowing, but they can also cause a steep rise in the exchange rate, damaging the competitiveness of export sectors.
The greatest potential for inclusive growth may actually be found in agriculture and agroindustry: beyond the well-known examples of export sectors such as cashew nuts and cut flowers, the next big thing may well be African local and regional markets, buoyed by steady demographic growth, urbanisation and rising income levels.
Table 8 Target share of export sectors (percentage in total exports).
Another purpose of carrying out the simulations in set 1 is to assess the level of linkages of export sectors.
Different measures can examine the impacts of export sectors as discussed in the above literature; however, by which channels the contribution may go through is not explicitly identified.
To capture the full impacts of export sectors, the study performs a series of simulations divided into three main exercises: external shocks, internal shocks, and the combination of the two shocks, listed in detailed in Table 7.
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By prioritising public investment in logistics corridors, IIRSA has privileged the global competitiveness of select export sectors over all other infrastructure provision and macro-regional planning considerations.
While the study discussed the economic structure as a whole, export structure and promotion policy of strategic export sectors were not focalized in their experiments.
The results of the three exercises are expected to point out the roles of the promising export sectors and the productivity measure that can be feasible to promote export orientation.6 The study discusses the simulation results based on two different closures: Closure 1 is the labor market equilibrium closure (the standard model), and closure 2 is the economy with unemployment (the modified model).
It's notable that one of the most unionized sectors in the nation is also one of the strongest export sectors, highlighting the fact that it's a high-quality workforce, not low wages that drive economic success.
Khemka: From an Indian point of view, clearly export sectors will be affected.
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