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Vertical specialisation (VS) and outsourcing have gained prominence in international trade recently and could represent an entry point for developing countries into world markets as well as a channel for technology transfer. However, entry into international supply chains often requires just-in-time delivery and close to zero fault rates, making market entry via VS difficult. This paper analyses the importance of infrastructure and quality of institutions for VS, for total trade and with a focus on the clothing and electronics sectors. It is found that good governance and an open trade policy is strongly related to VS in electronics. Infrastructure, particularly ports, is strongly related to VS in the clothing sector. Adapted from the source document.

This paper argues that intraindustry trade with developed countries is an important source of technolgy transfer, and creates incentives to climb up the learning curve. South Africa has an industrial structure that could be suited to such trade, but high costs and weak social capacity to assimilate technolgy are an impediment to productivity growth. Therefore, reintegration into the world economy is likely to reinforce dependence on resource-intensive industries. In the short run this need not adversely affect economic growth, but unless the quality and quantity of education are improved, the prospects for rebuilding the technological capacity and catch up with OECD countries are bleak. (DÜI-Hff)

1. Overview / Christopher Findlay, Hildegunn Kyvik Nordas, and Gloria Pasadilla -- 2. From cross-border higher education to trade in education services / Stephan Vincent-Lancrin -- 3. Regulating higher education services in the People's Republic of China / Xingde Zhu -- 4. Trade and investment in higher education services in Hong Kong, China / Jane Drake-Brockman -- 5. International transactions in tertiary education services: The case of Japan / Shintaro Hamanaka -- 6. Trade liberalization and domestic regulations: Implications for Malaysia as a regional education hub / Siew Yean Tham -- 7. Internationalization of tertiary education services in Singapore / Mun-Heng Toh -- 8. Audiovisual services: International trade and cultural policy / Gillian Doyle -- 9. Audiovisual services in India / Arpita Mukherjee -- 10. Audiovisual services in the Republic of Korea: Market development and policies / Yeongkwan Song.