Because new export industries in developing countries (call centers, canned pineapple, cut flowers) compete globally with thin margins and cannot earn supernormal profits, the pioneer who reveals the country's viability for that industry cannot recoup the social surplus, so without subsidy these high-spillover industries fail to emerge.

causalpending

Speaker

Dani Rodrik

Evidence Quote

from the perspective of the economy they generate huge social surplus because you know once you demonstrate that come flowers can be profitably groan

Source

Dani Rodrik on Globalization, Development, and Employment 04/11/2011EconTalk
Created: 6/16/2026, 2:24:26 PM

My Notes

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