Essay Export And Export Of A Manufacturing Sector

1165 Words Sep 8th, 2015 null Page
In 1960, the term of Newly Industrializing Economies (NIEs) has been introduced world widely due to the massive growth of industrialization in Asia. Indonesia, whose economic growth were about 6 percent a year, joined to the NIEs together with Malaysia and Thailand. One specific characteristic of these countries was an huge improvement of the export of a manufacturing sector as the industrialization has integrated to the international trade (Trade and Development Report, 1996). The manufacturing sector plays an important role for the economic growth. Therefore, this literature review will discusses further about the manufactures and its export determinants particularly in case of Indonesia.
Firstly, according to the Trade and Development Report (1996) published by United Nations Conference on Trade and Development (UNCTAD), the manufacturing sector is categorized into five categories based on the labour skill, technologies, and capital required in the industries. It is started with primary commodities consisting of raw materials which are extracted or harvested and require minimal processing such as processed food. The second category is ‘labour-intensive and resource-based industries’. This category is characterized by the using of a very limited local skill, technology, and capital. General examples of its manufacture are textiles, toys, and traditional handicraft. Following this is ‘a low-to-medium level of skill, technology, capital’ manufactures, comprising products…

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