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Avenues for Export Diversification: Issues for Low-Income Countries

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  • Brenton, Paul
  • Newfarmer, Richard
  • Walkenhorst, Peter

Abstract

While diversification of exports is often a desirable trade objective, it is far from clear how best to tap into new opportunities. This paper discusses the range of avenues of diversification, including (i) expanding the range of markets into which existing products are sold (geographic diversification); (ii) upgrading the value of existing products, including agricultural exports (quality diversification); and (iii) taking advantage of opportunities to expand non-merchandise exports (services diversification), in addition to introducing entirely new export products. All offer opportunities for cost-effective positive policies relating to the incentive regime, backbone services, and export support institutions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22758.

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Date of creation: Feb 2009
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Handle: RePEc:pra:mprapa:22758

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Related research

Keywords: Exports; trade; services; growth; low income countries; world markets;

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References

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  1. Mary Amiti & Caroline Freund, 2010. "The Anatomy of China's Export Growth," NBER Chapters, in: China's Growing Role in World Trade, pages 35-56 National Bureau of Economic Research, Inc.
  2. Amurgo-Pacheco, Alberto & Pierola, Martha Denisse, 2008. "Patterns of export diversification in developing countries : intensive and extensive margins," Policy Research Working Paper Series 4473, The World Bank.
  3. Hoekman, Bernard, 2006. "Liberalizing trade in services : a survey," Policy Research Working Paper Series 4030, The World Bank.
  4. Atish R. Ghosh & Jonathan David Ostry, 1994. "Export Instability and the External Balance in Developing Countries," IMF Working Papers 94/8, International Monetary Fund.
  5. James E. Rauch & Joel Watson, 1999. "Starting Small in an Unfamiliar Environment," NBER Working Papers 7053, National Bureau of Economic Research, Inc.
  6. Anthony J. Venables & William Maloney & Ari Kokko & Claudio Bravo Ortega & Daniel Lederman & Roberto Rigobón & José De Gregorio & Jesse Czelusta & Shamila A. Jayasuriya & Magnus Blomström & L. Coli, . "Natural Resources: Neither Curse nor Destiny," IDB Publications 59538, Inter-American Development Bank.
  7. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
  8. Robert C. Feenstra & Andrew K. Rose, . "Putting Things In Order: Patterns Of Trade Dynamics And Growth," Department of Economics 97-14, California Davis - Department of Economics.
  9. Andrew Berg & Jonathan D. Ostry & Jeromin Zettelmeyer, 2011. "What makes growth sustained?," Working Papers 133, European Bank for Reconstruction and Development, Office of the Chief Economist.
  10. Besedes, Tibor & Prusa, Thomas J., 2011. "The role of extensive and intensive margins and export growth," Journal of Development Economics, Elsevier, vol. 96(2), pages 371-379, November.
  11. Dirk Pilat & Anita Wölfl, 2005. "Measuring the Interaction Between Manufacturing and Services," OECD Science, Technology and Industry Working Papers 2005/5, OECD Publishing.
  12. Aaditya Mattoo & Lucy Payton, 2007. "Services Trade and Development : The Experience of Zambia," World Bank Publications, The World Bank, number 6697.
  13. Harding, Torfinn & Smarzynska Javorcik, Beata, 2007. "Developing Economies and International Investors: Do Investment Promotion Agencies Bring Them Together?," CEPR Discussion Papers 6418, C.E.P.R. Discussion Papers.
  14. Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2006. "What You Export Matters," CEPR Discussion Papers 5444, C.E.P.R. Discussion Papers.
  15. Asier Minondo, 2010. "Exports' quality-adjusted productivity and economic growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(2), pages 257-287.
  16. Brenton, Paul & Newfarmer, Richard, 2007. "Watching more than the Discovery channel : export cycles and diversification in development," Policy Research Working Paper Series 4302, The World Bank.
  17. Lutz, Matthias & Singer, H. W., 1994. "The link between increased trade openness and the terms of trade: An empirical investigation," World Development, Elsevier, vol. 22(11), pages 1697-1709, November.
  18. Brenton, Paul & Hoppe, Mombert, 2007. "Clothing and export diversification : still a route to growth for low-income countries ?," Policy Research Working Paper Series 4343, The World Bank.
  19. Collier, Paul & Venables, Anthony J., 2007. "Rethinking Trade Preferences: How Africa Can Diversify its Exports," CEPR Discussion Papers 6262, C.E.P.R. Discussion Papers.
  20. Klinger, Bailey & Lederman, Daniel, 2004. "Discovery and development : an empricial exploration of"new"products," Policy Research Working Paper Series 3450, The World Bank.
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Citations

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Cited by:
  1. Stephanie Medina Cas & Andrew Swiston & Luis-Diego Barrot, 2012. "Central America, Panama, and the Dominican Republic," IMF Working Papers 12/234, International Monetary Fund.
  2. Türkcan, Kemal, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," MPRA Paper 53292, University Library of Munich, Germany.
  3. Andrey A. GNIDCHENKO, 2011. "Defragmentation Of Economic Growth With A Focus On Diversification: Evidence From Russian Economy," Theoretical and Practical Research in Economic Fields, ASERS Publishing, vol. 0(1), pages 45-85, June.
  4. Gnidchenko, Andrey, 2011. "Моделирование Технологических И Институциональных Эффектов В Макроэкономическом Прогнозировании
    [Technologica
    ," MPRA Paper 35484, University Library of Munich, Germany, revised May 2011.
  5. AfDB AfDB, . "Egypt - Competitiveness Report 2010 Update," Africa Competitiveness Report, African Development Bank, number 984, 8.
  6. AfDB AfDB, . "Egypt - Competitiveness Report 2010 Update," Africa Competitiveness Report, African Development Bank, number 372, 8.

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