Overall Specialization and Income: Countries Diversity
Abstract� � � This paper gives evidence to a stylized fact often disregarded in international trade empir- ics: countries' diversification. In the last fifteen years, the growth of world trade coexisted with the tendency of countries to reduce the specialization of their export composition along the development path. On average, countries do not specialize, they diversify. Our semiparametric empirical analysis shows how this result is robust to the use of different statistical indexes used to measure trade specialization to the level of sectoral aggrega- tion and to the level of smoothing in the nonparametric term associated to income per capita. Using a General Additive Model (GAM) with country-specific fixed-effect, we show that, controlling for countries heterogeneity, sectoral export diversification increases with income. �
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Bibliographic InfoPaper provided by Macerata University, Department of Finance and Economic Sciences in its series Working Papers with number 37-2006.
Date of creation: Oct 2006
Date of revision: Oct 2008
Publication status: Forthcoming in The Review of World Economics, 1, 2009
Nonparametrics; International Trade; Specialization;
Other versions of this item:
- Luca De Benedictis & Marco Gallegati & Massimo Tamberi, . "Overall Specialization and Income: Countries Diversify," Working Papers 73, Sapienza University of Rome, CIDEI.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- F10 - International Economics - - Trade - - - General
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