When local cost discovery generates knowledge spillovers, specialization patterns become partly indeterminate and the mix of goods that a country produces may have important implications for economic growth. We demonstrate this proposition formally and adduce some empirical support for it. We construct an index of the 'income level of a country's exports,' document its properties, and show that it predicts subsequent economic growth.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
5444.
Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2005.
"What You Export Matters,"
NBER Working Papers
11905, National Bureau of Economic Research, Inc.
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Find related papers by JEL classification: F1 - International Economics - - Trade O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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