text: balance-of-payments data. 49.Service earnings account fornearly 25percentofthemerchandise export earnings ofdeveloped market economies. andalmost 20percentofthemerchandise exportearnings ofdeveloping countries (table3). 50.primary product export earnings (excluding fuels)ofdeveloped market . economies aremorethandouble thoseofprimary product exports fromdeveloplnq countries. Theirgrowth hasalsobeenhigher forthe1965-1967 period than~e growthofprimary export earnings fromdeveloping countries. Fuelexport earnings fromdeveloping countries arehigher thanfuelexport earnings fromdeveloped market economies, butfuelexport earnings fromdeveloped market economies have beengrowing morerapidly thanfuelexport earnings fromdeveloping countries. ne boosttofuelpricesinthe1970sbrought newproducers intothemarket and stimulated energy conservation, sothatpricesfellinthe1980s. 'd51.Theprincipal expansion intradehasoccurred inmanufactures, withther~l growthbothofinter- andintra-industry trade. Differences infactor endowments continue tobeimportant intradeinmanufactures, butthebulkoftradein manufactures consists ofintra-industry tradeamongdeveloped market economies whichexploits economies ofscale,specialization andproduct differentiation. . Tradeinmanufactures amongdeveloped market economies hasbeenstimulated bytheH mutualreduction oftradebarriers. Ithasledtointensive competitive markets withreSUlting gainsinproductivity. Inefficient firmsaredriven outofbusinesS andr?placed byhighly competitive ones. Therearealsocosts. Workers haveto ~etra1n an~moveto~ewlocations, butgainsthatcomeintheformofhigher 1ncomes, .h~gher qual1ty andcheaper consumer goods(including housing) lirethoughttooutwe1gh thecosts. -12-Table3.Product composition oftheexportearnings ofdeveloped market economies anddeveloping countries, 1965-1987 (Percentage, unlessotherwise indicated) Developed market ecopomies Manufactures ill Primaryproducts ~/ Fuels <;;.1 Totalmerchandise exports Merchandise exports (Billions ofUSdollars, current prices) Non-factor services aspercentage ofmerchandise exports Peveloping ecoDomies Manufactures ~/ Primaryproducts b/ Fuels <;;./ Totalmerchandise exports Merchandise exports (Billions ofUSdollars, currentprices) Non-factor services aspercentage ofmerchandise exports1965 69 28 3 100 127 18 58 23 100 361975 75 20 5 100 573 24 22 29 48 100 183 171987 80 15 4 100 1722 24 56 22 22 100 532 19 Source: Calculated fromUnitedNations commodity tradeandIMF balance-of-payments data. ~IStandard International TradeClassification (SITC,revised), Statistical Papers,Series M,No.34(United Nations publication, SalesNo.E.61.XVII.6): SITe5+6+7+8+9-68. blSITC0+1+2+4+68. t./SITe3. -13-52.Intradeinmanufactures, 79perc7ntoftheexports ofdeveloped market economies gotootherindustrial countr1es and21percentgotodeveloped market economies: fromdeveloping countries, 73percentgotodeveloped market economies andonly27percentgotootherdeveloping countries. ffacturesfromdeveloping countries havegrownevenmore53.Theexports 0manu . .'dlthntheexports ofmanufactures fromdeveloped market econom1es sInce ~:;~.YThe;mainly takeadvantage oftherelatively highlabour en?owmen~ ofthe d 1· t 'esandthustaketheformofinter- rather than1ntra-1ndustryeveop1ngcounr1 .trade. Theaverage annualrealgrowth ofmanufactured exports fromdevelopIng countries hasbeennearly 12percentayearsince1965. Growth peaJcedatover 16percentperannumin1975-1980 andwashighatover10percentperannumin the19805.
analysis: The text discusses the trade patterns and composition of exports and imports between developed and developing countries, highlighting the growth of manufactured exports from developing countries and the dominance of intra-industry trade among developed market economies. It also touches on the factors influencing trade, such as labor endowments and trade barriers. The text appears to be focused on economic development and international trade, with some relevance to industry and employment.