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Multilateral trade liberalisation helps promote export product diversification: Trade tensions damage the prospects of the poorest economies

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  • Sena Kimm Gnangnon

Abstract

Using a large panel dataset over a 20‐year period, this article explores the effect of multilateral trade liberalisation on export product diversification. Empirical results show that multilateral trade liberalisation is positively associated with export product diversification. However, less‐developed economies experience a greater positive effect than relatively advanced economies. This analysis suggests that if trade tensions reduce cooperation on trade matters among World Trade Organization members, it may hinder export product diversification in developing countries, and the poorest countries might be the most adversely affected.

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  • Sena Kimm Gnangnon, 2019. "Multilateral trade liberalisation helps promote export product diversification: Trade tensions damage the prospects of the poorest economies," Economic Affairs, Wiley Blackwell, vol. 39(3), pages 363-380, October.
    • Handle: RePEc:bla:ecaffa:v:39:y:2019:i:3:p:363-380
    DOI: 10.1111/ecaf.12366
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    Cited by:

    1. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Wage Inequality in the manufacturing sector of recipient-countries," EconStor Preprints 213936, ZBW - Leibniz Information Centre for Economics.
    2. Ali Dadpay & Saleh S. Tabrizy, 2021. "Political Agreements and Exporting Activities: An Empirical Assessment of the Effects of the JCPOA Agreement on Iran’s Exports," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(1), pages 147-180, March.

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