EARLY literature on trade and development widely recognized collective selfreliance as an important development objective in developing countries. So as to achieve this, industrialization as a development strategy was intensified in many developing countries in which the emphasis was placed on growth of trade. Until mid1960s, the industrialization-led development strategy was considered as an inward oriented approach through reorienting indigenous investment, material resources, technology and protective measures, such as tariffs, quota, taxes and exchange rate appreciation. Since mid-1960s, it was but realized that industries, which grew under protective umbrella also required inputs to sustain their ongoing production activity, the demand for which could not be met from the domestic sources alone. This, in turn, forced developing countries to enhance their import-capacity through increase in export, thus, shifting the emphasis from inward-looking import-substitution to outward-looking export-promotion led industrialization strategy.

Export Competitiveness and Trade Cooperation among NICs

Early literature on trade and development widely recognised collective self-reliance as an important development objective i n developing countries. So as to achieve this, industrialisation process in many developjng countries was intensified, in which the emphasis was placed on growth of trade. Until mid 60s, the industrialization-led development strategy was considered as an inward oriented through reorienting indigenous investment, material resources, technology and protective measures, such as tariffs, quota, taxes and exchange rate appreciation. Since mid 60s, it was but soon realised that industi-ies, which grew under protective umbrella also required inputs to sustain their ongoing production activity, the demand for which could not be met from the domestic sources alone. This, in turn, forced developing countries t o enhance their importcapacity through increase in export, thus, shifting the emphasis from inward-looking import-substitution to outward-looking export-promotion led industrialisation development strategy.

Trade Performance as a Basis of Trade Cooperation Among Developing Countries

NDIA, as a developing countxy. set out a planning process in I 1950 for achieving economic growth with self-mliance. In the Indian context, self-llance did not imply autarky, but it was intended to be a pragmatic approach in which both import substitution and export promotion were. to play a complementary role. The iniual thrust especially during the Second and Third Five Year Plans was on pursuing an inward orientation strategy of gMng priorities to the development of basic and heavy industries and progressive substitution of imports by domestic production through regulation of trade. I t was but soon reallsed that import substitution programme not onoly entailed higher domestic costs' but also increased the dependency on the capitalist overthnc, the stress on import-substitution was reduced and emphasis began to be placed on exports. Indeed, there was no explicit recognition of an export-led growth strategy: yet some important shlRs in indnustrIal policies and programmes did reflect a bias in the Indtan policy frame, whereby export expansion came to be regarded as critical factor in India's economic development. Under the various export promoting programmes, India's export indeed increased, but it was not enough' to meet the counby's industrialisation process. Several studies, incorporating sophisticated econometric models also underiined the poor performance of India's export. Most common characteristics of such studies were that these over-emphasfsed external demand factors. which, by and large, left internal supply hctors of export country unexplored. Following aims at contributing the relative significance of external demand as well as internal supply factors in explaining the performance of India's export.

India's Export Performance: Problems and Policy Responses

The theory of international trade emphasises that trade of an economy is determined by the factors arising from internal supply and external demand. The factors on the internal supply front constit...

R. S. Tiwari

Papers

India's Export Performance: Problems and Policy Responses

World Trade Patterns: an Empirical Study of Revealed Comparative Advantage Approach: