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Similarity in export composition and catching-up

Author

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  • Luca De Benedictis

    (Università di Macerata)

  • Lucia Tajoli

    (Politecnico di Milano)

Abstract

In this paper we look at the role of export composition in the growth process, considering how increased similarity in trade structure among countries can induce catching-up in income levels. We apply our analysis to the Central and Eastern European Countries (CEECs) using the EU as a benchmark. We explicitly consider the sectoral export patterns of the CEECs by comparing them to those of the current members of the EU, focusing on countries' specialization as suppliers for the EU market. Our main result is that similarity in export composition has a positive, significant and nonlinear impact on catching-up, and seems to be driven by the growth of the main export market more than by other factors. Results are robust to controlling for openness and country-size and for investment, schooling, and the quality of institutions.

Suggested Citation

  • Luca De Benedictis & Lucia Tajoli, 2005. "Similarity in export composition and catching-up," Working Papers 28-2005, Macerata University, Department of Finance and Economic Sciences, revised Oct 2008.
    • Handle: RePEc:mcr:wpdief:wpaper00028
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    References listed on IDEAS

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    Cited by:

    1. Antimiani, Alessandro & Henke, Roberto, 2006. "Italy and China Agri-Food Trade: Integration, Similarity and Competition," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25283, International Association of Agricultural Economists.
    2. Alessandro Antimiani & Fabrizio De Filippis & Roberto Henke, 2006. "European Union Enlargement and Agri-Food Trade Specialisation," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.

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    Keywords

    EU enlargement; CEECs; growth; export composition;
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