IDEAS home Printed from https://ideas.repec.org/a/ags/joaaec/137114.html

From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica

Author

Listed:
  • Ferreira, Gustavo F.C.
  • Harrison, R. Wes

Abstract

In the wake of a severe economic crisis in the 1980s Costa Rica abandoned an import substitution model of development adopted in the 1960s and implemented policies supporting foreign investment and the diversification of its exports. This study presents an application of the model proposed by Herzer and Nowak-Lehnmann to test the hypothesis that export diversification has contributed to economic growth in Costa Rica via externalities of learningby- doing and learning-by-exporting over the period of 1965–2006. After using the autoregressive distributed lags and dynamic ordinary least squares models no long-run relationship was found between export diversification and growth.

Suggested Citation

  • Ferreira, Gustavo F.C. & Harrison, R. Wes, 2012. "From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(4), pages 1-15, November.
    • Handle: RePEc:ags:joaaec:137114
    DOI: 10.22004/ag.econ.137114
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/137114/files/jaae345.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.137114?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dierk Herzer & Nowak-Lehnmann Felicitas, 2006. "What does export diversification do for growth? An econometric analysis," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1825-1838.
    2. Levin, Andrew & Raut, Lakshmi K, 1997. "Complementarities between Exports and Human Capital in Economic Growth: Evidence from the Semi-industrialized Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 46(1), pages 155-174, October.
    3. Jansen, Marion, 2004. "Income volatility in small and developing economies: export concentration matters," WTO Discussion Papers 3, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    5. Love, James, 1986. "Commodity concentration and export earnings instability : A shift from cross-section to time series analysis," Journal of Development Economics, Elsevier, vol. 24(2), pages 239-248, December.
    6. Perron, Pierre & Vogelsang, Timothy J, 1992. "Nonstationarity and Level Shifts with an Application to Purchasing Power Parity," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 301-320, July.
    7. Inder, Brett, 1993. "Estimating long-run relationships in economics : A comparison of different approaches," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 53-68.
    8. Fosu, Augustin Kwasi, 1990. "Export composition and the impact of exports on economic growth of developing economies," Economics Letters, Elsevier, vol. 34(1), pages 67-71, September.
    9. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    10. Moreno Brid, Juan Carlos & Pérez Caldentey, Esteban, 2003. "Trade liberalization and economic growth in Central America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    11. Marianne Matthee & Wim Naudé, 2007. "Export Diversity and Regional Growth: Empirical Evidence from South Africa," WIDER Working Paper Series RP2007-11, World Institute for Development Economic Research (UNU-WIDER).
    12. Jacint Balaguer & Manuel Cantavella-Jorda, 2004. "Structural change in exports and economic growth: cointegration and causality analysis for Spain (1961-2000)," Applied Economics, Taylor & Francis Journals, vol. 36(5), pages 473-477.
    13. Sanchez-Ancochea, Diego, 2006. "Development trajectories and new comparative advantages: Costa Rica and the Dominican Republic under Globalization," World Development, Elsevier, vol. 34(6), pages 996-1015, June.
    14. Cattaneo, Andrea & Ojeda, Raul A. Hinojosa- & Robinson, Sherman, 1999. "Costa Rica trade liberalization, fiscal imbalances, and macroeconomic policy: a computable general equilibrium model," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 39-67.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. World Bank, 2014. "Costa Rica : Five Years after CAFTA-DR, Assessing Early Results for the Costa Rican Economy," World Bank Publications - Reports 20010, The World Bank Group.
    2. Salifou K. Coulibaly & Cao Erbao, 2019. "An empirical analysis of the determinants of cocoa production in Cote d’Ivoire," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-19, December.
    3. Dahmani, Mounir, 2021. "Impact de la diversification des exportations sur la croissance économique: Cas de la Tunisie [Impact of export diversification on economic growth: case of Tunisia]," MPRA Paper 112225, University Library of Munich, Germany, revised 2021.
    4. Junguo Shi & Hubert Visas & Jabbar Ul-Haq & Shujaat Abbas & Sana Khanum, 2023. "Investigating the impact of export product diversification on environmental degradation: evidence from Chinese Provinces," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11455-11486, October.
    5. Xiaozhen Qin & Shan Li & Weipan Xu & Xun Li, 2019. "Which Export Variety Matters for Urban Economic Growth, Related or Unrelated Variety?," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    6. Hongbo Liu & Hanho Kim & Justin Choe, 2019. "Export diversification, CO2 emissions and EKC: panel data analysis of 125 countries," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 361-393, June.
    7. World Bank, 2024. "Diversification through the Application of the Co-evolutionary Framework," World Bank Publications - Reports 41312, The World Bank Group.
    8. Aamir Hussain Siddiqui, 2020. "Analysis of Pakistan Trade Policies in the Context of Export Diversification," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 5(1), pages 59-76, March.
    9. Marije Schaafsma & Ilda Dreoni & Lacour Mody Ayompe & Benis N. Egoh & Dewa Putu Ekayana & Arilson Favareto & Sonny Mumbunan & Louise Nakagawa & Jonas Ngouhouo‐poufoun & Marieke Sassen & Thiago Kanashi, 2023. "Mapping social impacts of agricultural commodity trade onto the sustainable development goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2363-2385, August.
    10. Ogundipe, Adeyemi & Amaghionyeodiwe, Lloyd, 2013. "Transnational Trade In Ecowas: Does Export Content Matter?," MPRA Paper 51617, University Library of Munich, Germany.
    11. Maha Khan & Uzma Afzal, 2016. "The Diversification and Sophistication of Pakistan’s Exports: The Need for Structural Transformation," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 99-127, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ferreira, Gustavo F.C., 2009. "From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 47178, Southern Agricultural Economics Association.
    2. Hasanov, Fakhri J. & Shannak, Sa'd, 2020. "Electricity incentives for agriculture in Saudi Arabia. Is that relevant to remove them?," Energy Policy, Elsevier, vol. 144(C).
    3. Young Ademola Obafemi, 2022. "Specialization Versus Diversification as Alternative Strategies for Sustainable Growth in Resource-Rich Developing Countries. Case of Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(3), pages 1-47, September.
    4. Athanasia Stylianou Kalaitzi & Trevor W. Chamberlain, 2023. "Manufactured exports, disaggregated imports and economic growth: the case of Kuwait," Economic Change and Restructuring, Springer, vol. 56(2), pages 919-940, April.
    5. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    6. Ang, James B., 2008. "What are the mechanisms linking financial development and economic growth in Malaysia," Economic Modelling, Elsevier, vol. 25(1), pages 38-53, January.
    7. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    8. Chor Foon Tang & Salah Abosedra, 2020. "Does Financial Development Moderate the Effects on Growth Volatility? The Experience of Malaysia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(4), pages 361-381, November.
    9. Mamon Adam Maarof & Dildar Haydar Ahmed & Ahmed Samour, 2023. "Fiscal Policy, Oil Price, Foreign Direct Investment, and Renewable Energy—A Path to Sustainable Development in South Africa," Sustainability, MDPI, vol. 15(12), pages 1-16, June.
    10. Ahmed Samour & Omar Ikbal Tawfik & Magdalena Radulescu & Cristina Florentina Baldan, 2023. "Do Oil Price, Renewable Energy, and Financial Development Matter for Environmental Quality in Oman? Novel Insights from Augmented ARDL Approach," Energies, MDPI, vol. 16(12), pages 1-14, June.
    11. Martins Iyoboyi, 2019. "Macroeconomic Analysis of Export Diversification in Nigeria," Empirical Economic Review, Department of Economics and Statistics, Dr Hassan Murad School of Management, University of Management and Technology, Lahore, vol. 2(1), pages 83-116.
    12. Singh, Tarlok, 2010. "Does domestic saving cause economic growth? A time-series evidence from India," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 231-253, March.
    13. Cheung, Yin-Wong & Chinn, Menzie D. & Qian, XingWang, 2012. "Are Chinese trade flows different?," Journal of International Money and Finance, Elsevier, vol. 31(8), pages 2127-2146.
    14. Hanana Khan & Maran Marimuthu & Fong-Woon Lai, 2020. "Fiscal Deficit and Its Less Inflationary Sources of Borrowing with the Moderating Role of Political Instability: Evidence from Malaysia," Sustainability, MDPI, vol. 12(1), pages 1-16, January.
    15. Shahbaz, Muhammad & Mallick, Hrushikesh & Kumar, Mantu & Loganathan, Nanthakumar, 2015. "Does Globalization Impede Environmental Quality in India?," MPRA Paper 67285, University Library of Munich, Germany, revised 15 Oct 2015.
    16. Amarawickrama, Himanshu A. & Hunt, Lester C., 2008. "Electricity demand for Sri Lanka: A time series analysis," Energy, Elsevier, vol. 33(5), pages 724-739.
    17. Kevin Nell, 2003. "A 'Generalised' Version of the Balance-of-Payments Growth Model: An application to neighbouring regions," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(3), pages 249-267.
    18. Gozgor, Giray, 2014. "Aggregated and disaggregated import demand in China: An empirical study," Economic Modelling, Elsevier, vol. 43(C), pages 1-8.
    19. Muhammad Shahbaz & Ijaz Rehman & Nurul Mahdzan, 2014. "Linkages between income inequality, international remittances and economic growth in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1511-1535, May.
    20. Shahbaz, Muhammad & Mallick, Hrushikesh & Mahalik, Mantu Kumar & Sadorsky, Perry, 2016. "The role of globalization on the recent evolution of energy demand in India: Implications for sustainable development," Energy Economics, Elsevier, vol. 55(C), pages 52-68.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:joaaec:137114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.