Brandon Sheridan, North Central College assistant professor of economics, published an article, titled “Manufacturing Exports and Growth: When Is a Developing Country Ready to Transition From Primary Exports to Manufacturing Exports,” in the December 2014 issue of Journal of Macroeconomics. The journal is a highly respected, peer-reviewed economics journal that focuses on the theoretical and empirical aspects of macroeconomics and monetary economics, including issues of economic growth and international trade.
His article observes that many developing countries rely heavily on a narrow range of agricultural and/or mineral commodities as their main source of export income, despite manufactured goods offering higher returns. Findings suggest that attaining a threshold level of skilled workers is necessary before it makes economic sense for developing countries to transition from a reliance on primary goods to manufactured goods. This threshold is identified by an endogenous sample-splitting technique.
The journal article is available through subscription or interlibrary loan.
Click here to view Sheridan’s faculty profile.