Finland and the New International Division of Labour

257 Pages·1992·23.303 MB·English

by  Kimmo Kiljunen (auth.)

FINLAND AND THE NEW INTERNATIONAL
DIVISION OF LABOUR
Also hy Kimmo Kiljunen
KAMPUCHEA: Decade of the Genocide (editor)
NAMIBIA: The Last Colony (editor with Reg Green alld Marja-Liisa Kiljunen)
REGION-TO-REGION COOPERATION BETWEEN DEVELOPED AND
DEVELOPING COUNTRIES (editor)
Finland and the New
International Division
of Labour
Kimmo Kiljunen
Direetor, Institute of Development Studies
Helsinki University, Finland
Foreword by Charles P. Kindleberger
Emeritus Professor, Massaehusetts Institute of Technology
M
© Kimmo Kiljunen 1992
Foreword © Charles P. Kindleberger 1992
Softcover reprint of the hardcover 1s t edition 1992
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may bf! reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988,
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London WIP 9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
First published 1992 by
THE MACMILLAN PRESS LT D
Houndmills, Basingstoke, Hampshire RG21 2XS
and London
Companies and representatives
throughout the world
ISBN 978-1-349-10014-9 ISBN 978-1-349-10012-5 (eBook)
DOI 10.1007/978-1-349-10012-5
A catalogue record for this book is available
from the British Library
Copy-edited and typeset by Povey-Edmondson
Okehampton and Rochdale
To my wife, Marja-Liisa Kiljunen
Contents
List of Tab/es
IX
Foreword by Charles P. Kindleberger
XI
Preface xiii
List of Abbreviations
XVI
1 Towards a Theory of International Division of Industrial
Labour 1
1.1 The ca se for comparative advantage
1.2 Qualifications for determination of comparative
advantage 6
1.3 Opposition for specialisation based on comparative
advantage 17
1.4 Determination of international industrial division of
labour 35
2 Third World Industrialisation 54
2.1 Country concentration 57
2.2 Branch concentration 61
2.3 Corporate concentration 68
3 International Specialisation of Finland 78
3.1 Development success in the semi-periphery 78
3.2 Pattern of international specialisation 96
4 Import Competition from LDCs 112
4.1 Import penetration 113
4.2 LDC imports by sectors 115
4.3 Country concentration in LDC imports 118
4.4 Adjustment constraints 121
4.5 Employment change 123
5 Manufactured Exports to LDCs 134
5.1 DMEs as suppliers of manufactures 135
5.2 Export destinations 138
VII
Vlll Contents
6 LDC Competition in Export Markets 143
6.1 Competition in traditional export markets 143
6.2 Clothing and footwear exports 149
6.3 Forest product exports 158
7 Production Capital and Technology Transfers 182
7.1 Finnish production participation in LDCs 184
7.2 Finnish dependence on foreign production capital
and technology 191
Conclusions 198
Notes 205
References 21 7
Index 237
List of Tables
I.l Pattern of international participation 52
2.1 Distribution of world manufacturing value-added,
labour force, and exports by major regions, 1938-85 55
2.2 Twelve leading exporters of manufactures among LDCs,
1965 and 1986 58
2.3 Export structure of manufactures in the leading LDC
exporters, 1986 63
2.4 Export structure of manufactures in DMEs and LDCs,
1986 65
2.5 Classification of manufactured exports by skill intensity
and value-added content in LDCs and DMEs, 1986 66
2.6 Private direct investment stock from DMEs in LDCs,
1967, 1974 and 1981 71
2.7 Average hour1y wages in manufacturing in DMEs and
leading LDC exporters of manufactures, 1984-1986 74
2.8 TNC shares in the production, employment and exports
of manufactures in the leading LDC exporters, 1978-86 75
3.1 Finnish foreign trade, 1870-1910 81
3.2 Finnish foreign trade, 1920-40 85
3.3 Finnish foreign trade by major partners and regions,
1953-88 89
3.4 Finnish foreign trade structure, 1953-87 91
3.5 The employment structure, 1870-1985 93
3.6 Finnish foreign trade structure by major regions, 1987 100
3.7 Classification of Finnish manufactured exports by skill
intensity and value-added content, 1987 101
3.8 Foreign trade with LDCs by main DMEs, 1987 104
3.9 Finnish trade ratio, 1987 107
4.1 Manufactured imports from LDCs by main DMEs,
1987 114
4.2 Finland's main imports of manufactured goods from
LDCs, 1960-87 116
4.3 Twelve leading LDC ex porters of manufactures to
Finland, 1970 and 1987 119
4.4 Manufacturing employment in Finland, 1970-87 124
5.1 Manufactured exports to LDCs by main DMEs, 1987 137
IX
x List 0/ Tables
5.2 Finnish manufactured exports to twelve leading LDCs,
1970, 1980 and 1987 139
5.3 OECD manufactured exports to twelve leading LDCs in
1965, 1980 and 1987 140
6.1 Market shares of Finland and LDCs in OECD imports,
1970, 1980 and 1987 146
6.2 Finnish c10thing and footwear exports by major country
destinations, 1970, 1980 and 1987 155
6.3 World forest resources and global use of wood, 1985 162
6.4 Established plantations in LDCs, 1985 166
6.5 World forest industry production, 1960 and 1985 168
6.6 Composition of forest product exports, 1985 170
6.7 Fifteen leading exporters of forest products, 1985 172
6.8 World exports of forest products, 1960 and 1985 175
7.1 Stock of direct investment in LDCs, by major DMEs,
1970 and 1981 185
7.2 Number of Finnish subsidiaries abroad and foreign
subsidiaries in Finland, 1965-87 187
7.3 Number of Finnish subsidiaries in LDCs, 1987 188
7.4 Number of Finnish manufacturing subsidiaries abroad
by sectors, 1986 190
7.5 R&D expenditures by major DMEs, 1987 192
7.6 Machinery and equipment trade of major DMEs. 1970.
1980 and 1987 194