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Watching More Than The Discovery Channel To Diversify Exports

In: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies

Author

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  • Paul Brenton
  • Richard Newfarmer

Abstract

In seeking to accelerate export diversification, much of the focus in the past has been on increasing the number of products that are exported. Hausmann and Rodrik (2003) continue in this vein and focus on the “discovery process” of exporting, contending that firms in developing economies tend to under invest in discovery because would-be first movers into export markets fear their initially high returns would be eroded by subsequent new entry, and they thus under invest in searching for new export activities. A policy corollary is that governments can usefully deploy industrial policies to stimulate discovery and hence diversification…

Suggested Citation

  • Paul Brenton & Richard Newfarmer, 2014. "Watching More Than The Discovery Channel To Diversify Exports," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 15, pages 315-328, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814603386_0015
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