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Export Diversification: What's behind the Hump?

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  • Olivier Cadot

    (World Bank, HEC Lausanne, CERDI, CEPR and CEPREMAP)

  • Céline Carrère

    (CERDI-CNRS, Université d′′Auvergne)

  • Vanessa Strauss-Kahn

    (ESCP-Europe and CEPII)

Abstract

The paper explores the evolution of export diversification patterns along the economic development path. Using a large database with 156 countries over 19 years at the HS6 level of disaggregation (4,991 product lines), we look for action at the intensive and extensive margins. We find a hump-shaped pattern of export diversification similar to what Imbs and Wacziarg (2003) found for production. Diversification and subsequent reconcentration take place mostly along the extensive margin. This hump-shaped pattern is consistent with the conjecture that countries travel across diversification cones, as discussed in Schott (2003, 2004) and Xiang (2007). © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00078
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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 93 (2011)
Issue (Month): 2 (May)
Pages: 590-605

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Handle: RePEc:tpr:restat:v:93:y:2011:i:2:p:590-605

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