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Geographical Diversification of Developing Country Exports

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Author Info
Shepherd, Ben

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Abstract

This paper shows that export costs, tariffs, and international transport costs are all important determinants of geographical export diversification in a sample of 123 developing countries. A 10% reduction in any one of these factors produces a 5%-6% increase in the number of foreign markets entered. Moreover, there is evidence that these impacts differ significantly across countries and sectors: geographical export diversification is more sensitive to export costs and transport costs in more differentiated sectors, and to export costs in lower income countries. These results are generally robust to alternative specifications, and instrumental variables estimation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11267.

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Date of creation: 24 Oct 2008
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Handle: RePEc:pra:mprapa:11267

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Related research
Keywords: International trade; Trade policy; Trade and development; Extensive margin; Economic geography.;

Find related papers by JEL classification:
F15 - International Economics - - Trade - - - Economic Integration
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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