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Trade Diversity And Stages Of Development - Evidence On Eu Countries

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  • Aleksandra Parteka

    ()
    (Gdansk University of Technology, Gdansk, Poland)

Abstract

The paper presents the dynamics of trade diversity with respect to stages of development in the European context. The analysis focuses on EU27 countries observed across the years 1988-2010 and compared to a sample of 136 international economies at all levels of income per capita. We use product level statistics (six digit HS0) and confront export and import patterns of absolute diversification/concentration. The results show that in line with ‘stages of diversification’ approach (Imbs and Wacziarg, 2003), EU27 countries are characterized by high degree of trade diversity (on average, EU27 countries export 78% and import 90% of goods effectively exported and imported at the world level) and within the analyzed period most of them registered a reconcentration of trade structures. Obtained estimation results confirm positive relationship between trade diversity and economic development levels (conditional mainly upon the size of the country) with a possibility of reconcentration at higher stages of development (observable in nonparametric estimates).

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File URL: ftp://ftp.zie.pg.gda.pl/RePEc/gdk/wpaper/WP_GUTFME_A_8_Parteka.pdf
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Bibliographic Info

Paper provided by Faculty of Management and Economics, Gdansk University of Technology in its series GUT FME Working Paper Series A with number 8.

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Length: pages
Date of creation: Mar 2013
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Handle: RePEc:gdk:wpaper:8

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Keywords: diversification; concentration; trade; economic development;

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References

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  1. Frank Bickenbach & Eckhardt Bode & Christiane Krieger-Boden, 2010. "Closing the Gap between Absolute and Relative Measures of Localization, Concentration or Specialization," Kiel Working Papers 1660, Kiel Institute for the World Economy.
  2. Aleksandra PARTEKA, 2007. "Employment and Export Specialization Patterns versus GDP Per Capita Performance - Unifying Approach," Working Papers 302, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Olivier Cadot & Céline Carrere & Vanessa Strauss-Khan, 2011. "Export Diversification: What's behind the Hump?," Working Papers halshs-00553597, HAL.
  4. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
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  7. 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.
  8. Wacziarg, Romain & Imbs, Jean, 2000. "Stages of Diversification," Research Papers 1653, Stanford University, Graduate School of Business.
  9. 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.
  10. Luca Benedictis & Marco Gallegati & Massimo Tamberi, 2009. "Overall trade specialization and economic development: countries diversify," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(1), pages 37-55, April.
  11. Aleksandra Parteka & Massimo Tamberi, 2013. "What Determines Export Diversification in the Development Process? Empirical Assessment," The World Economy, Wiley Blackwell, vol. 36(6), pages 807-826, 06.
  12. Aleksandra Parteka, 2009. "Employment Specialization in the Enlarged European Union," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 24.
  13. Richard Newfarmer & William Shaw & Peter Walkenhorst, 2009. "Breaking Into New Markets," World Bank Publications, The World Bank, number 2616, October.
  14. Klinger, Bailey & Lederman, Daniel, 2010. "Export discoveries, diversification and barriers to entry," Policy Research Working Paper Series 5366, The World Bank.
  15. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
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Cited by:
  1. Aleksandra Parteka, 2013. "The Evolving Structure Of Polish Exports (1994-2010) – Diversification Of Products And Trade Partners," GUT FME Working Paper Series A 10, Faculty of Management and Economics, Gdansk University of Technology.

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