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Product Variety and Economic Growth

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  • Michael Funke

Abstract

This paper uses panel data for 19 OECD countries and finds support for the hypothesis that a greater degree of product variety relative to the United States helps to explain relative per capita GDP levels. The empirical work relies upon some direct measures of product variety calculated from 6-digit OECD export and import data. Although the issue is still far from being settled, the emerging conclusion is that the index of relative product variety across countries is significantly correlated with relative per capita income levels.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 00/5.

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Length: 25
Date of creation: 01 Jan 2000
Date of revision:
Handle: RePEc:imf:imfwpa:00/5

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Cited by:
  1. Robert Feenstra & Hiau Looi Kee, 2004. "On the Measurement of Product Variety in Trade," American Economic Review, American Economic Association, vol. 94(2), pages 145-149, May.
  2. Keely,L.C., 2003. "Why isn't growth making us happier? : utility on the hedonic treadmill," Working papers 22, Wisconsin Madison - Social Systems.
  3. Craig R. Parsons & Anh Thu Nguyen, 2009. "Import variety and productivity in Japan," Economics Bulletin, AccessEcon, vol. 29(3), pages 1947-1959.
  4. Robert C. Feenstra, 2006. "New Evidence on the Gains from Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 617-641, December.
  5. Keely, Louise C., 2005. "Why isn't growth making us happier? Utility on the hedonic treadmill," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 333-355, July.

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