Linkages and Leakages: Industrial Tracking in an Enclave Economy

Abstract

The study of export-led industrialization in an enclave economy comes at the juncture of two chains of long-standing controversies concerning developing areas. The first controversy grows out of observed difficulties of poor countries to industrialize from a current comparative advantage in primary commodities, despite buoyant earnings of foreign exchange. The second controversy turns inward, and looking away from trade policy, seeks the key to industrial development in greater interaction between domestically-oriented sectors, not in greater export earnings.

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