Abstract
In recent years one of the most dynamic manufactured export sectors in developing countries has been the assembly and processing operations subcontracted from multinational firms. The paper analyzes this relatively new phenomenon as a possible opportunity for the small and very poor developing countries to increase their manufactured exports. After making a case that domestic size and level of economic development are not preconditions of success in exporting manufactures, it is further argued that small and very poor countries may even have a comparative advantage in international subcontracting. Not only does international subcontracting avoid some of the traditional obstacles which these countries experience in exporting manufactures, but the gains from this activity seem to be particularly beneficial to them.
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