During the past three decades, low- and middle-income countries have
become increasingly integrated into the global economy. Exports of
low-income countries grew from 26 to 55 per cent of their gross domestic
product (GDP) between 1994 and 2008 (Hanson, 2012). Exports of middle-income
countries increased from 25 to 55 per cent of their GDP during
the same period. Hanson (2012) attributes the heightened global engagement
to declines in trade costs through large-scale trade liberalizations
in developing countries and the removal of barriers to low-skilled goods
such as apparel and textiles in developed country markets. Greater international
fragmentation of production and increased demand for commodities,
fueled by growth in India and China, have also contributed to
this trend.