Browsing by Author "Mbogoro, Damas"

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    Exports of manufactures from African countries: a study in economic development and the structure of industrial exports from selected African countries
    (University of Dar es Salaam, 1986) Mbogoro, Damas
    This study is about the relationship between the level of economic development and the structure of industrial exports from African countries. In the course of our study we test three sets of hypotheses on trade in manufactured goods. The first set of hypotheses refers to the heckscher-ohlin or the factor proportions theory of international trade. The second set of hypotheses refers to the Linder thesis which postulates that that domestic representative demand is the basis for trade in manufactured goods; and the third set of hypotheses deals with hirach’s postulates of trade between developing and industrial a countries. By way of background the study also addresses the issue of the level of industrial development in Africa in the 1970s. While import substitution industrialization was the dominant strategy, African countries also adopted export oriented and indigenous industrialization strategies. Within the industrial sector, the food, beverages, tobacco, textiles, clothing and leather products industries were the dominant industries. Their contribution towards the number of establishments, employment, gross output and domestic value added was more than fifty per cent in many countries. On average, industries in Africa in the 1970s were characterized by low domestic value added mainly because of a high level of imported raw material input content for the import substituting industries and a low level of local processing for the export oriented industries. The export oriented industrialization strategy which was based on the processing of the abundant natural resources (mainly minerals) was characterized by the use of physical capital intensive techniques, and therefore offered very limited prospects for solving the urban-centered unemployment problem. About 80 per cent of industrial exports from Africa in both 1975 and 1980 were agriculture and mineral related (Ricardo) goods mostly mineral related and physical capital intensive. We have argued that most industrial exports from Africa were physical capital intensive largely because the export oriented industrialization strategy was based on the exploitation of natural resources. Partly because of the presence of a large share of natural resources intensive industrial exports we have found a very weak relationship between the level of economic development and the structure of industrial exports from Africa in both 1975 and 1980.