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Import Diversification along the Growth Path

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  • Esteban Jaimovich

Abstract

We provide evidence showing that the degree of diversification of import sources of finely disaggregated commodities rises monotonically along the growth path. This result is robust to different measures of import diversification and the inclusion of a large set of additional control variables. In addition, we show the process of rising import diversification takes place as countries gradually increase their spending shares in imports originating from relatively distant exporters.

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Bibliographic Info

Paper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 242.

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Length: 15 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:cca:wpaper:242

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Keywords: Bilateral trade; import diversication; product variety;

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References

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  1. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
  2. Tarasov, Alexander, 2008. "Per Capita Income, Market Access Costs, and Trade Volumes," MPRA Paper 19989, University Library of Munich, Germany, revised Dec 2009.
  3. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 123(2), pages 441-487, 05.
  4. Joel Rodrigue & Hiroyuki Kasahara, 2004. "Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence," Econometric Society 2004 North American Summer Meetings 511, Econometric Society.
  5. Christian Broda & David E. Weinstein, 2006. "Globalization and the Gains from Variety," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 121(2), pages 541-585, May.
  6. Richard Baldwin & James Harrigan, 2011. "Zeros, Quality, and Space: Trade Theory and Trade Evidence," American Economic Journal: Microeconomics, American Economic Association, vol. 3(2), pages 60-88, May.
  7. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
  8. Jon Haveman & David Hummels, 2004. "Alternative hypotheses and the volume of trade: the gravity equation and the extent of specialization," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 199-218, February.
  9. Ina Simonovska, 2010. "Income Differences and Prices of Tradables: Insights from an Online Retailer," NBER Working Papers 16233, National Bureau of Economic Research, Inc.
  10. Tibor Besedes & Thomas Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 266-295, February.
  11. Vincenzo Merella & Esteban Jaimovich, 2013. "Love for Quality, Comparative Advantage, and Trade," 2013 Meeting Papers, Society for Economic Dynamics 244, Society for Economic Dynamics.
  12. Ina Simonovska, 2010. "Income differences and prices of tradables," Globalization and Monetary Policy Institute Working Paper 55, Federal Reserve Bank of Dallas.
  13. Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
  14. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
  15. Chen, Wei-Chih, 2012. "Innovation and duration of exports," Economics Letters, Elsevier, vol. 115(2), pages 305-308.
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  17. László Halpern & Miklós Koren & Adam Szeidl, 2011. "Imported Inputs and Productivity," CeFiG Working Papers, Center for Firms in the Global Economy 8, Center for Firms in the Global Economy, revised 16 Sep 2011.
  18. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Aleksandra PARTEKA & Massimo TAMBERI, 2012. "Relative product diversification in the course of economic development: import-export analysis," Departmental Working Papers 2012-23, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  2. Parteka, Aleksandra & Tamberi, Massimo, 2013. "Product diversification, relative specialisation and economic development: Import–export analysis," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 121-135.
  3. Cadot, Olivier & Carrere, Celine & Strauss-Kahn, Vanessa, 2011. "OECD imports : diversification of suppliers and quality search," Policy Research Working Paper Series 5627, The World Bank.
  4. Ricardo Argüello, 2013. "Trade diversification in Colombia, 1991-2011," BORRADORES DE INVESTIGACIÓN 011019, UNIVERSIDAD DEL ROSARIO.
  5. Aleksandra Parteka, 2013. "The Evolving Structure Of Polish Exports (1994-2010) – Diversification Of Products And Trade Partners," GUT FME Working Paper Series A, Faculty of Management and Economics, Gdansk University of Technology 10, Faculty of Management and Economics, Gdansk University of Technology.

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