Mauritius!: Dynamising Export Competitiveness(No. 33 Economic Papers)

This paper analyses the attempt by Mauritius to replicate the export success of the East Asia "Tiger Economies" by adapting outward-oriented trade and investment strategies. It reviews Mauritius' competitive strengths and weaknesses at the national and enterprise level: its policies for trade, industry, foreign investment, industrial technology, human capital and EPZ infrastructure, and provides a detailed strategy for sustaining future export competitiveness. The Mauritius experience offers valuable lessons for other developing and transition economies.

Table of Contents:
Acknowledgements Abbreviations Appendices Tables, Figures and Boxes Currency Equivalents Foreword Executive Summary 1. Setting and Approach 1.1 Introduction 1.2 Objectives 1.3 A Framework for Analysing Competitiveness 1.4 Structure of Study 2. Mauritian Manufactured Export Performance in Comparative Perspective 2.1 Introduction 2.2 Export Values and Structure 2.3 Growth Rates 2.4 Market Shares and Competitive Positioning 2.5 Revealed Comparative Advantage 2.6 Mauritian Comparative Advantages and Challenges 3. Trade and Industrial Policies 3.1 Import Liberalisation 3.2 Exchange Rate Management 3.3 Export Policies and Incentives 3.4 Regulations and Procedures 3.5 Enterprise-Level Perceptions of the Policy and Incentive Regime 4. Human Resources for Competitiveness 4.1 Introduction 4.2 Labour Costs and Productivity 4.3 Skills 4.3.1 Formal Education 4.3.2 Employee Skills and Training 4.4 Training Needs by Main Exporting Activities 4.1.1 Textiles and Clothing 4.1.2 Information Technology (IT) 4.1.3 Electronics 5. Technological Performance and Support 5.1 Introduction 5.2 Comparative Technological Performance 5.3 Technological Capabilities in Mauritian Firms 5.4 Technology Support Institutions 5.4.1 MSTQ: MSB 5.4.2 Helping SMEs: SMIDO 5.4.3 Diffusing Technology: TDS 5.4.4 Productivity Enhancement: EPZDA 5.4.5 Conclusions 5.5 Promoting Industry Clusters 5.5.1 The Nature of Industrial Clusters 5.5.2 The Case for Industrial Districts in Mauritius 6. Foreign Direct Investment and Competitiveness 6.1 Introduction 6.2 Trends in Foreign Investment 6.3 Determinants of Foreign Direct Investment 6.4 Foreign Investment Policy Regime 6.5 Effectiveness of Foreign Investment Promotion 7. EPZ Infrastructure 7.1 Introduction 7.2 A Brief Review of EPZ Development 7.3 The Cost Competitiveness of EPX Infrastructure 8. Policy Recommendations for a Competitiveness Strategy 8.1 Introduction 8.2 Goals, Activities and Institutional Setting 8.2.1 Goals 8.2.2 Activities 8.2.3 Institutional Setting 8.3 Trade and Industrial Policies 8.4 Human Resources 8.5 Technology Support 8.6 Promoting Industrial Districts 8.7 Foreign Investment Attraction and Promotion 8.8 EPZ Infrastructure Appendix A: The Enterprise Survey Appendix B: Technological Classification of Manufactured Exports Bibliography Notes