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Specialize Rightly or Decline

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Author Info
Alessia LO TURCO () (Universita' Politecnica delle Marche, Dipartimento di Economia)
Massimo TAMBERI () (Universita' Politecnica delle Marche, Dipartimento di Economia)

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Abstract

Is exporting potato chips really the same than exporting microchips? Is the rate of economic growth independent on the export structure? Is moving toward dynamic sectors a key for economic growth? Our purpose is to determine whether and how the sectoral composition of exports aects countries;growth. Dierently from Hausmann, Hwang and Rodrik (2006), we measure the nature of specialization as the average human capital content of countries' exports and we also propose the average world demand growth as an indicator to test whether demand apart from supply is relevant to growth. We finally test all these indexes in a panel data model of growth determinants finding a positive and significant relation between growth and the average skill content of countries' exports: a 1% increase in the average share of the human capital contained in exports causes the steady state real GDP per worker to grow of about 2%. Finally, there is slight evidence that moving towards export structures focused on moredynamic goods in terms of world demand growth helps growth too.

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File URL: http://dea2.univpm.it/quaderni/pdf/305.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Economia in its series Working Papers with number 305.

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Length: 34
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:anc:wpaper:305

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Web page: http://www.dea.univpm.it/

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Related research
Keywords: economic growth; panel data; specialization;

Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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This page was last updated on 2009-11-26.


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