Notes on Newly Industrialized Countries (DMGT 21)

**Notes in DMGT 21 -- Development Management** **Newly Industrialized Countries** Upstream industries Downstream industries Intermediaries "International trade was a witness to the flattening of the curve in the last 2 decades." Unbundling of production became profitable for firms. WTO was fo...

**Notes in DMGT 21 -- Development Management** **Newly Industrialized Countries** Upstream industries Downstream industries Intermediaries "International trade was a witness to the flattening of the curve in the last 2 decades." Unbundling of production became profitable for firms. WTO was founded in Uruguay Round in 1995. WTO aimed to reduce tariffs from 34%. In 2012, tariffs were only 2.9% China joined WTO in 2001. Fall of the Iron Curtain Iron Curtain was the symbol of barrier or disintegration of USSR from Western US. Winston Churchill in a speech in 1946 said that "an Iron Curtain descended the continent." Iron Curtain line was the dividing line between communism and democracy. The entry of China to WTO meant larger work force in the production, and comparatively low wages for international production. Regional Trade Agreements quadrupled in mid-90's. Internet made communication at zero cost. Intermediate goods replaced traditional trade in final goods. David Ricardo's "World of Clothes versus Wine." Intermediate Goods account for 2/3 of World Trade today. **Examples of vertical specialization:** 1. 2. More than 70 percent of the plane's value is not generated by Boeing. - - - - **WIOD** -- World Input Output Database - - 1. - 2. - 3. 4. **Recommendations of IMF** - - Source: International Monetary Fund (2016). "Role of Newly Industrialized Economies in Global Value Chain." By Dominik Boddin. IMF Working Paper.