Protection and Developing Countries' Exports of Manufactures

Protection and the LDCs Gordon A. Hughes and David M. G. Newbery Conventional wisdom suggests that non-tariff barriers erected by the industrialized countries have harmed the developing countries. However closer investigation suggests that the main sufferers have not been the primary targets of these protectionist measures, the Newly Industrialized Countries such as Hong Kong, Singapore and Taiwan. Producers in these countries redirected their exports towards markets in other Less Developed Countries. They also switched production into more advanced products in order to circumvent protectionist measures. At the same time the New Exporting Countries such as Malaysia and the Philippines have been able to take advantage of reduced competition in developed country markets to increase their market share. In addition multinational corporations, attracted by low labour costs have located in these countries, transferring technology and expertise from the developed economies. The major sufferers have been the poorest developing countries such as India and Pakistan. They were less able to adapt than the more sophisticated and agile exporters of the Far East.