The Decline of Syrian Industry: An Assessment of Performance and Capabilities During the 1990s

Syrian manufacturing industry has several advantages: it has a long history and a strong entrepreneurial base, relatively low wages and a good location to serve large markets in oil-rich neighbours and Europe. It has not, however, performed well. This paper focuses on its record in the 1990s, benchmarking indicators of performance and competitive capabilities against selected comparators. Manufacturing growth has been erratic and probably low; manufactured exports have declined dramatically and its composition has shifted towards primary products. The demise of the Soviet block, which provided a soft market for Syrian exporters, has exposed their competitive weaknesses. The competitive base of Syrian industry has been eroding. With greater openness, Syria faces enormous challenges in terms of building new technological capabilities to strengthen existing activities and diversifying into more dynamic non-oil manufactured exports

China’s Competitive Performance: A Threat To East Asian Manufactured Exports?

There is growing concern in Southeast and East Asia about the competitive threat posed by China’s burgeoning exports, exacerbated by its accession to the WTO. The threat is not confined to labour-intensive products but spans the whole technological and skill range. At the same time, China is rapidly raising its imports from the region, and it is not clear whether its burgeoning exports will damage its neighbours. We examine the dimensions of China’s competitive threat in the 1990s, benchmarking competitive performance by technology and market, and finds that market share losses are so far mainly in low technology products, with Japan being the most vulnerable market. We analyse market share changes and highlight product groups that are directly or indirectly exposed to a competitive threat. We examine intra-regional trade and find that China and its neighbours are raising high technology exports in tandem: the nature of the international production systems involved lead to complementarity rather than confrontation. China is thus acting as an engine of export growth for its neighbours in terms of direct trade. However, this will change as China moves up the value chain and takes on the activities that have driven East Asian export growth

Mapping Fragmentation: Electronics and Automobiles in East Asia and Latin America

'Fragmentation', the relocation of processes or functions across countries in response to cost and other differences, has important implications for development. We discuss the drivers of fragmentation and map it for electronics and automotives in East Asia and Latin America. For technical reasons, electronics is fragmenting faster worldwide than autos. Electronics networks are more advanced, widespread and integrated in EA than LAC, and are largely responsible for EA's rapid export growth. The auto network is more advanced in LAC but is slower growing and is not integrated into a regional system. Apart from Mexico, LAC lacks an electronics network, partly accounting for the region's weak export performance. We offer insights into the following: Why do industries fragment differently? How can fragmentation be measured? Why does fragmentation in developing countries concentrate on EA and LAC? Why has fragmentation evolved differently in these two regions? Can other developing regions attract and benefit from fragmentation?