Determinants of Export Diversificationaround the World: 1962 - 2000
AbstractUsing a large dataset of countries, covering the period 1962-2000, this paper analyzes the main determinants of export diversification (concentration). We explore the role of several factors and we use three different indicators of export concentration. We find robust evidence across specifications and indicators that trade openness induces higher specialization. In contrast, financial development does not seem to help countries to diversify their exports. Looking at the effects of exchange rates, in some of our results we find a positive effect of real exchange rate volatility on concentration, but not significant effects of exchange rate overvaluation. We also find evidence that human capital accumulation contributes positively to diversify exports and that increasing remoteness tends to reduce export diversification. We also explore the role of terms-of-trade shocks. Most of our results suggest an interesting interaction between this variable and human capital: improvements in the terms of trade tend to concentrate exports, but this effect is lower for those countries with higher levels of human capital. This evidence suggests that countries with higher education can take advantage of positive terms of trade shocks to increase export diversification.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 605.
Date of creation: Jan 2011
Date of revision:
Other versions of this item:
- Manuel R. Agosin & Roberto Alvarez & Claudio Bravo‐Ortega, 2012. "Determinants of Export Diversification Around the World: 1962–2000," The World Economy, Wiley Blackwell, vol. 35(3), pages 295-315, 03.
- F10 - International Economics - - Trade - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Campbell, Douglas, 2012.
"Estimating the Impact of Currency Unions on Trade Using a Dynamic Gravity Framework,"
12-01, University of California at Davis, Department of Economics.
- Douglas Campbell, 2012. "Estimating the Impact of Currency Unions on Trade Using a Dynamic Gravity Framework," Working Papers 121, University of California, Davis, Department of Economics.
- Campbell, Douglas L., 2011. "Estimating the impact of currency unions on trade using a dynamic gravity framework," MPRA Paper 35531, University Library of Munich, Germany.
- Campbell, Douglas L., 2012. "Estimating the Impact of Currency Unions on Trade Using a Dynamic Gravity Framework," MPRA Paper 37091, University Library of Munich, Germany.
- Jan Hanousek & Evžen Kočenda, 2013. "Factors of trade in Europe," Working Papers 333, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Aleksandra Parteka & Massimo Tamberi, 2013.
"Product Diversification, Relative Specialisation And Economic Development: Import-Export Analysis,"
GUT FME Working Paper Series A
15, Faculty of Management and Economics, Gdansk University of Technology.
- 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.
- 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.
- Aleksandra Parteka & Massimo Tamberi, 2012. "Relative Product Diversification in the Course of Economic Development: Import-Export Analysis," DEGIT Conference Papers c017_056, DEGIT, Dynamics, Economic Growth, and International Trade.
- Cimoli, Mario & Fleitas, Sebastian & Porcile, Gabriel, 2011. "Real Exchange Rate and the Structure of Exports," MPRA Paper 37846, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda).
If references are entirely missing, you can add them using this form.