Leading Dragons Phenomenon : New Opportunities for Catch-Up in Low-Income Countries

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Chandra, Vandana
dc.contributor.author
Lin, Justin Yifu
dc.contributor.author
Wang, Yan
dc.date.accessioned
2012-03-19T17:29:47Z
dc.date.available
2012-03-19T17:29:47Z
dc.date.issued
2012-03-01
dc.date.lastModified
2017-12-13T12:58:54Z
dc.description.abstract
Modern economic development is accompanied by the structural transformation from an agrarian to an industrial economy and occurs through a process of continuous industrial and technological upgrading. Since the 18th century, all countries that industrialized successfully in Europe, North America and East Asia followed their comparative advantage and leveraged the late-comer advantage to emulate the leader-follower flying geese pattern of industrial upgrading. The large dynamic emerging market countries such as China, India and Brazil are also engaged in industrial upgrading but with a critical difference. In particular, because of its sheer size, China has absorbed nearly all labor-intensive jobs and become the world s largest exporter of labor-intensive products. The current view is that China s dominance hinders poor countries from developing similar industries. The authors argue that industrial upgrading has increased wages and is causing China to graduate from labor-intensive to more capital- and technology-intensive industries. These industries will shed labor and create a huge opportunity for lower wage countries to start a phase of labor-intensive industrialization. This process, called the Leading Dragon Phenomenon, offers an unprecedented opportunity to low-income Sub-Saharan Africa where the industrial sector is underdeveloped and investment capital and entrepreneurial skills are leading constraints to manufacturing. It can seize the opportunity and resolve the constraints by attracting some of the OFDI flowing currently from China, India and Brazil into the manufacturing sectors of other developing countries. All low-income countries will compete but to catch the jobs spillover from China, the winner must implement credible economic development strategies that are consistent with its comparative advantage.
en
dc.identifier
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120315164328
dc.identifier.uri
http://hdl.handle.net/10986/3288
dc.language
English
dc.relation.ispartofseries
Policy Research working paper ; no. WPS 6000
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ABSOLUTE POVERTY
dc.subject
AGRICULTURAL SECTOR
dc.subject
AGRICULTURE
dc.subject
AUTOMOBILE
dc.subject
AUTOMOBILES
dc.subject
BANKING SYSTEM
dc.subject
BINDING CONSTRAINTS
dc.subject
BUSINESSES
dc.subject
CAPABILITIES
dc.subject
CAPITAL ACCUMULATION
dc.subject
CAPITAL INTENSITY
dc.subject
CENTRAL BANK
dc.subject
COMMERCE
dc.subject
COMMODITIES
dc.subject
COMMODITY
dc.subject
COMMODITY EXPORTS
dc.subject
COMPARATIVE ADVANTAGE
dc.subject
COMPARATIVE ADVANTAGES
dc.subject
COMPETITIVENESS
dc.subject
COMPUTERS
dc.subject
CONSUMER GOODS
dc.subject
COST STRUCTURES
dc.subject
CREDIT RATIONING
dc.subject
CURRENCY
dc.subject
DATA LIMITATIONS
dc.subject
DEVELOPED COUNTRIES
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPING COUNTRY
dc.subject
DEVELOPMENT AGENCIES
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT POLICY
dc.subject
DEVELOPMENT STRATEGIES
dc.subject
DISTRIBUTION SYSTEM
dc.subject
DIVERSIFICATION
dc.subject
DIVIDENDS
dc.subject
DOMESTIC CURRENCY
dc.subject
DOMESTIC MARKET
dc.subject
DOMESTIC MARKETS
dc.subject
DOMESTIC SAVINGS
dc.subject
DYNAMIC EMERGING MARKET
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC HISTORY
dc.subject
ECONOMIC PROJECTIONS
dc.subject
ECONOMIC STRUCTURE
dc.subject
ECONOMIC TRENDS
dc.subject
ELECTRICITY
dc.subject
ELECTRONICS INDUSTRY
dc.subject
EMERGING ECONOMIES
dc.subject
EMERGING MARKET COUNTRIES
dc.subject
EMERGING MARKET ECONOMIES
dc.subject
EMERGING MARKETS
dc.subject
EMPIRICAL EVIDENCE
dc.subject
ENTREPRENEURIAL SKILLS
dc.subject
EQUIPMENT
dc.subject
EXPORT GROWTH
dc.subject
EXPORT MARKETS
dc.subject
EXPORT OPPORTUNITIES
dc.subject
EXPORT PROMOTION
dc.subject
EXPORT SHARE
dc.subject
EXPORT SUBSIDIES
dc.subject
EXPORTER
dc.subject
EXPORTERS
dc.subject
EXPORTS
dc.subject
EXTERNALITIES
dc.subject
EXTREME POVERTY
dc.subject
FACTOR ENDOWMENTS
dc.subject
FINANCIAL CAPITAL
dc.subject
FINANCIAL CRISIS
dc.subject
FOREIGN CAPITAL
dc.subject
FOREIGN DIRECT INVESTMENT
dc.subject
FOREIGN EXCHANGE
dc.subject
FOREIGN INVESTMENT
dc.subject
FOREIGN INVESTORS
dc.subject
FOREIGN VALUE
dc.subject
GDP
dc.subject
GDP PER CAPITA
dc.subject
GLOBAL ECONOMY
dc.subject
GLOBAL EXPORTS
dc.subject
GLOBAL MARKET
dc.subject
GLOBAL MARKETS
dc.subject
GLOBAL SUPPLY CHAINS
dc.subject
GLOBALIZATION
dc.subject
GNP
dc.subject
GOLD STANDARD
dc.subject
GOVERNMENT CONTRACTS
dc.subject
GOVERNMENT SUPPORT
dc.subject
GROWTH MODELS
dc.subject
GROWTH PATH
dc.subject
GROWTH RATE
dc.subject
GROWTH RATES
dc.subject
GROWTH STRATEGY
dc.subject
INCOME
dc.subject
INCOME GROWTH
dc.subject
INCOME LEVEL
dc.subject
INCOME LEVELS
dc.subject
INDIVIDUAL FIRMS
dc.subject
INDUSTRIAL BASE
dc.subject
INDUSTRIAL COUNTRIES
dc.subject
INDUSTRIAL COUNTRY
dc.subject
INDUSTRIAL DEVELOPMENT
dc.subject
INDUSTRIAL ECONOMY
dc.subject
INDUSTRIAL PRODUCTION
dc.subject
INDUSTRIAL REVOLUTION
dc.subject
INDUSTRIAL SECTOR
dc.subject
INDUSTRIAL STRUCTURE
dc.subject
INDUSTRIALIZATION
dc.subject
INFORMATION COMMUNICATION
dc.subject
INFORMATION TECHNOLOGY
dc.subject
INNOVATIONS
dc.subject
INSTRUMENT
dc.subject
INTEREST RATES
dc.subject
INTERNATIONAL BANK
dc.subject
INTERNATIONAL DEVELOPMENT
dc.subject
INTERNATIONAL STANDARDS
dc.subject
INVESTMENT CAPITAL
dc.subject
INVESTMENT POLICY
dc.subject
JOINT STOCK COMPANIES
dc.subject
JOINT VENTURES
dc.subject
LABOR FORCE
dc.subject
LIBERALIZATION
dc.subject
LIBERALIZATION OF TRADE
dc.subject
LICENSE
dc.subject
LICENSES
dc.subject
LOW-INCOME COUNTRIES
dc.subject
LOW-INCOME COUNTRY
dc.subject
MANAGERIAL SKILLS
dc.subject
MANUFACTURING
dc.subject
MANUFACTURING INDUSTRIES
dc.subject
MANUFACTURING INDUSTRY
dc.subject
MARKET COMPETITION
dc.subject
MARKET FAILURES
dc.subject
MARKET MECHANISM
dc.subject
MARKET SHARE
dc.subject
MARKET SHARES
dc.subject
MATERIAL
dc.subject
MEDIUM TERM
dc.subject
MONOPOLY
dc.subject
MOV
dc.subject
MULTINATIONAL CORPORATIONS
dc.subject
NATIONAL ACCOUNTS
dc.subject
NATIONAL INVESTMENT
dc.subject
NATURAL RESOURCE
dc.subject
NATURAL RESOURCES
dc.subject
NEW MARKET
dc.subject
NEW PRODUCT
dc.subject
NEW TECHNOLOGIES
dc.subject
NEW TECHNOLOGY
dc.subject
OPEN ACCESS
dc.subject
OPEN ECONOMIES
dc.subject
OUTPUT
dc.subject
PER CAPITA GROWTH
dc.subject
PER CAPITA INCOME
dc.subject
PER CAPITA INCOME LEVELS
dc.subject
PER CAPITA INCOMES
dc.subject
POLICY INTERVENTIONS
dc.subject
POLICY RESEARCH
dc.subject
POLICY STANCE
dc.subject
POLITICAL STABILITY
dc.subject
POOR COUNTRIES
dc.subject
POOR PEOPLE
dc.subject
POVERTY LINE
dc.subject
POVERTY RATE
dc.subject
POVERTY RATES
dc.subject
POVERTY REDUCTION
dc.subject
PRIMARY PRODUCTS
dc.subject
PRIVATE CAPITAL
dc.subject
PRIVATE SECTORS
dc.subject
PRIVATIZATION
dc.subject
PRODUCT DIFFERENTIATION
dc.subject
PRODUCTIVITY
dc.subject
PRODUCTIVITY GROWTH
dc.subject
PROTECTIONISM
dc.subject
PUBLIC WORKS
dc.subject
R&D
dc.subject
RADIOS
dc.subject
RAPID DEVELOPMENT
dc.subject
RAPID ECONOMIC GROWTH
dc.subject
RAPID GROWTH
dc.subject
RAPID INDUSTRIALIZATION
dc.subject
REAL GDP
dc.subject
RESERVE
dc.subject
RESULT
dc.subject
RESULTS
dc.subject
RETAIL TRADE
dc.subject
RETURNS
dc.subject
RICH COUNTRIES
dc.subject
RURAL AREAS
dc.subject
SAVINGS
dc.subject
SEMICONDUCTOR
dc.subject
SETTLEMENT
dc.subject
SKILLED LABOR
dc.subject
SKILLED WORKERS
dc.subject
STATE-OWNED ENTERPRISES
dc.subject
STRUCTURAL CHANGE
dc.subject
TAX
dc.subject
TAX COLLECTION
dc.subject
TECHNOLOGICAL INNOVATION
dc.subject
TECHNOLOGICAL PROGRESS
dc.subject
TECHNOLOGY FRONTIER
dc.subject
TECHNOLOGY TRANSFER
dc.subject
TELEGRAPH
dc.subject
TRADE BARRIERS
dc.subject
TRADE DEFICIT
dc.subject
TRADE REGIME
dc.subject
TRADING
dc.subject
TRANSACTION
dc.subject
TRANSACTION COSTS
dc.subject
TRANSISTOR
dc.subject
TREATIES
dc.subject
TREATY
dc.subject
URBAN AREAS
dc.subject
VALUE ADDED
dc.subject
VALUE CHAIN
dc.subject
WAGES
dc.subject
WEB
dc.subject
WORLD DEVELOPMENT INDICATORS
dc.subject
WORLD ECONOMY
dc.subject
WORLD MARKET
dc.subject
WORLD MARKETS
dc.subject
WORLD TRADE
dc.subject
WTO
dc.title
Leading Dragons Phenomenon : New Opportunities for Catch-Up in Low-Income Countries
en
okr.date.disclosure
2012-03-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120315164328
okr.globalpractice
Poverty
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6000
okr.identifier.externaldocumentum
000158349_20120315164328
okr.identifier.internaldocumentum
15939414
okr.identifier.report
WPS6000
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/03/15/000158349_20120315164328/Rendered/PDF/WPS6000.pdf
en
okr.region.administrative
East Asia and Pacific
okr.region.administrative
The World Region
okr.region.administrative
The World Region
okr.region.geographical
East Asia
okr.region.geographical
Asia
okr.relation.associatedurl
https://openknowledge.worldbank.org/handle/10986/16585
okr.topic
Poverty Reduction :: Achieving Shared Growth
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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