To achieve development,developing countries must capitalize on their relative advantages,including comparative advantage and latecomer advantages.A country must develop an industrial structure that is consistent with ...To achieve development,developing countries must capitalize on their relative advantages,including comparative advantage and latecomer advantages.A country must develop an industrial structure that is consistent with the comparative advantage of its factor structure in order to avoid the trap of“structural catch-up”that stifles development.The issue for developing countries is that their comparative advantage in core factors of production is unstable and tends to decrease and dissipate.Such a comparative advantage cannot provide adequate growth for convergence to occur.Developed countries,on the other hand,can sustain economic growth due to their comparative advantage in high-quality factors.Latecomer advantage refers to the ability of developing countries to increase their knowledge factor in a cost-effective manner by learning,importing,assimilating,and using knowledge and technology that already exist.Although comparative and latecomer advantages may have a combined effect,each has its distinct characteristics.Latecomer advantage is a special development factor that applies to latecomers.It is crucial at all stages of development,but especially so in the middle-income stage and beyond.Bringing latecomer advantage into full play is essential for developing nations to converge with the advanced countries.展开更多
文摘To achieve development,developing countries must capitalize on their relative advantages,including comparative advantage and latecomer advantages.A country must develop an industrial structure that is consistent with the comparative advantage of its factor structure in order to avoid the trap of“structural catch-up”that stifles development.The issue for developing countries is that their comparative advantage in core factors of production is unstable and tends to decrease and dissipate.Such a comparative advantage cannot provide adequate growth for convergence to occur.Developed countries,on the other hand,can sustain economic growth due to their comparative advantage in high-quality factors.Latecomer advantage refers to the ability of developing countries to increase their knowledge factor in a cost-effective manner by learning,importing,assimilating,and using knowledge and technology that already exist.Although comparative and latecomer advantages may have a combined effect,each has its distinct characteristics.Latecomer advantage is a special development factor that applies to latecomers.It is crucial at all stages of development,but especially so in the middle-income stage and beyond.Bringing latecomer advantage into full play is essential for developing nations to converge with the advanced countries.
