Department of Economics2024-11-1019970304-387810.1016/S0304-3878(97)00018-72-s2.0-0031463080http://dx.doi.org/10.1016/S0304-3878(97)00018-7https://hdl.handle.net/20.500.14288/15742Applying cointegration techniques in a panel data setting, we document persistent growth of manufactured exports from certain developing countries. To complement the investigation of persistence (measured by the country 'fixed-effects'), we analyze asymmetries in income elasticities: for all developing countries, the decline in exports with world income contraction is sharper than is the rise on the upswing; the decline is, however, especially pronounced for countries with low or negative persistence. The results are consistent with long-term buyer-supplier relationships that create 'insiders' and 'outsiders' in manufactured goods trading. Exports are also influenced by the transactional infrastructure (proxied by telecommunications penetration).EconomicsJournal Article71167600009Q19645