The driving forces behind export expansion in the context of liberalisation reforms in developing countries remain a matter of debate. This article aims to contribute to this debate through a case study of the Sri Lankan experience following the policy reforms initiated in 1977. The results point to the importance of sound macroeconomic policy, policies to promote export oriented foreign direct investment and revamping the overall policy setting in favour of private sector activities for achieving export success. Direct export subsidies are a poor substitute for genuine trade, investment and macroeconomic policy reforms. There is little support for the hypothesis that an import-substitution phase is a prerequisite for the successful transition of domestic manufacturing to export orientation.
|Journal||Hitotsubashi Journal of Economics|
|Publication status||Published - 1998|